Gold off 3-month highs; political risks provide support

Gold futures

Due to profit taking, gold fell from 3-month highs but political uncertainties from elections taking place in Europe and concerns over U.S. President Donald Trump’s policies supported the demand for the safe-haven commodity.

Spot gold slipped 0.2 percent to $1,238.90 per ounce. It reached its highest level since November 11 at $1,244.67.

U.S. gold futures went up 0.1 percent to $1,241 per ounce.

Investors worry over the strong showing in the French presidential race of far-right candidate Marine Le Pen, who has promised to take France out of the euro zone and hold a referendum on European Union membership.

Gold was boosted by the controversy over U.S. President Donald Trump’s temporary travel ban on people from seven Muslim-majority countries.

Trump is looking to issue a directive targeting a controversial Dodd-Frank rule that requires companies to disclose whether their products contain “conflict minerals” from a part of Africa stricken by war.

According to research, consumers in the United States allocated the smallest amount of their annual household expenditures in 60 years to energy last year as the prices of electricity, gasoline and natural gas fell and energy efficiency improved.

On Thursday, Japanese Prime Minister Shinzo Abe headed to Washington in hopes that the promises to help create jobs in the U.S. and boost Japan’s military convince Trump to turn down the heat on trade and currency and stand by an alliance that is decades old.

Holdings SPDR Gold Trust, the world’s largest gold-backed ETF, went up 0.68 percent to 832.58 tons on Wednesday from Tuesday. Holdings went up for a sixth session in a row.


Leave a Reply

Your email address will not be published.