Gold Soars by 0.64% to Two-month High

Gold

 

 

Gold jumped on Monday, January 23, hitting its highest in two months as unease over the economic policies of U.S. President Donald Trump pushed investors towards safer assets.

A weaker dollar makes gold cheaper for holders of other currencies, while lower yields reduce the opportunity cost of holding non-yielding bullion.

Spot gold was up 0.64 percent at $1,217.36 an ounce. It earlier touched $1,219.43, its highest since Nov. 22. U.S. gold futures were up 1.06 percent at $1,217.70.

“The story is one of a weaker dollar and political uncertainty,” said Danske Bank analyst Jens Pedersen.

Gold finished last week up 1 percent for its fourth straight week of gains and longest consecutive string of weekly increases since July.

Underscoring the bullish view, data from the U.S. Commodity Futures Trading Commission (CFTC) showed that speculators raised their net long positions in COMEX gold contracts for a second week in the week to Jan. 17.

“Momentum indicators are biased to the upside,” said ScotiaMocatta analysts, targeting $1,255.70 an ounce.

However, gold faces resistance, at $1,219, that it may struggle to break, Reuters’ technical analysis shows.

Among other precious metals, palladium was down 1.81 percent at $774.15, having earlier touched $795.60, its highest since May 2015.

Silver rose 0.99 percent to $17.20 while platinum gained 0.4 percent to $980.30.

LEAVE A REPLY

Please enter your comment!
Please enter your name here