January 17, 2017 / 11:24 AM / 3 years ago

PRECIOUS-Trump comments on dollar strength prop gold to 8-week peak

* Trump's trade policies concern investors
    * Silver hits one-month high of $17
    * Platinum marks over two-month peak of $991.70

 (Recasts, updates prices; adds comment, second byline, NEW YORK
dateline)
    By Marcy Nicholson and Zandi Shabalala
    NEW YORK/LONDON, Jan 17 (Reuters) - Gold jumped more than 1
percent to an eight-week high on Tuesday as stocks and the
dollar fell after U.S. President-elect Donald Trump said the
greenback was "too strong" and British Prime Minister Theresa
May promised a parliamentary vote on Brexit.
    Spot gold rose for the seventh straight session, and
was 1.05 percent higher at $1,215.39 an ounce by 3:12 p.m. EST
(2012 GMT) after touching a Nov. 22 high of $1,218.64 an ounce.
    U.S. gold futures settled up 1.4 percent at $1,212.9
per ounce. The dollar, in which gold is priced, fell 0.8
percent to the lowest since Dec. 8 against major currencies.
    "Trump's stance on trade and protectionism has been well
aired and it will always be a key factor. But until we get more
clarity on what exactly it means, this should help to underpin
gold," said Societe Generale head of metals research Robin Bhar.
    In an article in the Wall Street Journal, Trump said the
strength of the U.S. dollar against China's yuan "is killing
us." 
    "This year there are lots of uncertain political events,
including elections, so if you looking for a bit of a refuge
from stormy seas gold will be one of those safe assets that you
would park some money in," Bhar said.
    Sterling logged its biggest daily gain since at least
1998 as May promised a parliamentary vote on Britain's deal to
leave the EU and sought to draw a line under discussion of a
"hard" or "soft" Brexit. 
    "With both these comments, investors bought gold and drove
the entire complex higher," said Miguel Perez-Santalla, vice
president of Heraeus Metal Management in New York.
    "Tomorrow's (U.S.) Consumer Price Index will give better
color on our current economic market environment."
    Gold is often considered an alternative investment during
times of geopolitical and financial uncertainty.
    Also boosting gold was uncertainty over Trump's plans for
the U.S. economy after his inauguration on Friday.
    Holdings of the largest physically backed ETF, the SPDR Gold
Trust, rose on Friday for the first time since Nov. 9, the
day after Trump's election victory, indicating investor
interest. 
    Credit Suisse said in a note it remained "constructive" on
gold prices, forecasting an average of $1,338 an ounce in 2017.
    Spot silver was up 2.3 percent at $17.15 an ounce,
after hitting a one-month high. Platinum was last down
1.1 percent at $970.25 after touching a two-month high.
    Palladium added 0.6 percent to $748.55.

 (Additional reporting by Nallur Sethuraman in Bengaluru;
Editing by Alexandra Hudson and Meredith Mazzilli)
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