Gold Prices Increase to Two Month Peak as Greenback Falls on Trump Uncertainty

On Monday, gold prices increase suddenly during European early trade, hitting the strongest level in about two months as the U.S. greenback plunged during improbability around the economic policies of new U.S. President Donald Trump.

Advertisements

shutterstock_287368517 (1).jpg

On Monday, gold prices increase suddenly during European early trade, hitting the strongest level in about two months as the U.S. greenback plunged during improbability around the economic policies of new U.S. President Donald Trump.

Delivery of gold for February on the Comex division of the NYMEX affected a session peak of $1,219.40 a troy ounce, a level not perceived since November 22.

It was previously at $1,214.50 by 3:10AM ET (08:10GMT), increased nearly $10.00, or 0.8%.

The dollar sold off after President Trump struck a protectionist statement in his inauguration speech on Friday, disappointing investors who expected to hear additional information on his promises of tax reductions and other stimulus. After  this protectionist statement, the greenback  prolonged losses on Monday.

During his inauguration address Friday, Trump promised to put “America first.” He indicated that he would abandon the Trans-Pacific Partnership and renegotiate NAFTA.

The dollar index declined 0.54% at 100.23. It was off 1.12% at 113.35  yen at 02:30 ET.

Sterling traded beyond $1.24. U.K. Prime Minister  Theresa May is due to meet Trump Friday in Washington.

The  euro  firmed to a six-week peak of over $1.07.

Later on Monday, European Central Bank President  Mario Draghi is due to speak .

Investors will return to the business of observing economic data for fresh indications on the health of the economy in the week onward,  with Friday’s advanced reading for U.S. development in the limelight.

Last month, the Fed Reserve signaled  that at least three rate increases were in the near future  for 2017. According to a prediction of interest rates from members of the central bank, identified as the dot-plot.

However, traders stayed  skeptical. Instead, markets are expecting  just two rate hikes during the course of this year, according to the reports.

Any delay in raising interest rates would be perceived as positive for gold and negative for the greenback.

Also on the Comex, delivery of silver futures for March add on on 11.0 cents, or approximately 0.7%, at $17.14 a troy ounce during early hours in London.

In the meantime, platinum increased 1% to $985.75, while  palladium added 0.4% to $791.40 an ounce, the strongest level since May 2015.

In another place in metals trading, copper futures increased 2.0 cents, or approximately 0.8%, to $2.645 a pound.

Traders are encouraged to be updated with the latest market news at Trade12.com.Check out Trade12 reviews to know more about the trending economic events. Open an account now and learn more!

 

Financial trouble?  Let Exo Capital Markets manage your funds accordingly.  Exo Capital Markets strives to become the leading financial services firm by offering its clients with the most modern solutions in the industry.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s