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.
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.