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Newcrest CEO says Trump uncertainty buoying gold, but may not last

Published 09/02/2017, 03:37 pm
Updated 09/02/2017, 03:40 pm
© Reuters.  Newcrest CEO says Trump uncertainty buoying gold, but may not last
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MELBOURNE, Feb 9 (Reuters) - Uncertainty over U.S. President Donald Trump's policies has driven up gold prices, but the effect may be limited to the short-term only, the head of Australia's biggest gold miner Newcrest Mining Ltd NCM.AX said on Thursday.

Gold prices have risen to near three-month highs above $1,240 an ounce XAU= amid worries over the impact of Trump's protectionist policies and political risks in Europe ahead of a string of elections.

"What I think he's done, at least for the moment, is introduce a level of uncertainty that wasn't necessarily there before he took over," Newcrest Chief Executive Sandeep Biswas told reporters after speaking at the Melbourne Mining Club.

Investors, unsure of what may happen under Trump, were maintaining positions in gold as a traditional store of value rather than due to any structural shift, he said.

"I don't think there's any policies that we've seen at this stage that would lead me to believe that it's good or bad in the medium or long term for gold," said Biswas, who started following Trump on social media last week to "keep up with what he's up to."

Newcrest, whose shares have jumped 52 percent over the past year, is due to report half-year results on Feb. 13.

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