🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

PRECIOUS-Gold rebounds on Trump policy uncertainty

Published 16/11/2016, 06:44 am
© Reuters.  PRECIOUS-Gold rebounds on Trump policy uncertainty
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* U.S. dollar holds above 100 level

* Silver, platinum off multi-month lows (Updates prices; adds comment, second byline, NEW YORK dateline)

By Marcy Nicholson and Zandi Shabalala

NEW YORK/LONDON, Nov 15 (Reuters) - Gold edged higher on Tuesday, snapping a three-session losing streak, on uncertainty over the economic policies of U.S. President-elect Donald Trump.

Trump has vowed to boost domestic spending, which has the potential to stoke inflation and dent demand for non-yielding bullion, but the market is seeking more details on his policies.

Spot gold XAU= was up 0.29 percent at $1,223.41 an ounce at 2:33 p.m. EST (1933 GMT), after slipping on Monday to its lowest since June 3 at $1,211.08.

U.S. gold futures GCcv1 settled up 0.2 percent at $1,224.50.

"Gold will have to wait and see when Trump moves into the White House and what policies he will cancel," Natixis precious metals analyst Bernard Dahdah said.

Trump is due to officially take power in January with promises of rolling back a major trade agreement and cutting taxes.

"There have been lots of statements of U.S. policy, but we don't have details and we don't know what it looks like. That's fertile ground for gold," ETF Securities commodities strategist Martin Arnold said.

Generally, investors pile into safe-haven assets such as gold in times of political and economic uncertainty.

The U.S. dollar index .DXY held above the 100 level and touched a fresh 11-month high, and Treasuries prices were little changed with yields near multi-month highs. MKTS/GLOB

"The (gold) market is taking a little hiatus. It's not convinced that the risk on is over and therefore it gets clipped when it goes above $1,230," said James Steel, chief metals analyst for HSBC Securities.

"It gives the impression of a dead cat bounce (but it's) too soon to say."

Gold has shed nearly 9 percent from a Nov. 9 high of $1,337.40 after Trump's election victory, hurt by a stronger U.S. dollar and surging Treasury yields.

U.S. retail sales rose more than expected in October as households bought motor vehicles and a range of other goods, pointing to sustained economic strength that could allow the Federal Reserve to raise interest rates next month. rates typically pressure bullion prices.

Among other precious metals, silver XAG= was up 0.7 percent at $16.99 an ounce, having touched its lowest since June 8 at $16.61 in the previous session.

Platinum XPT= rose 0.4 percent to $934.20, bouncing back from the more than eight-month low of $917.50 touched on Monday.

Palladium XPD= gained as much as 1.6 percent to reach $709.20, its highest since Oct. 4.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.