Gold rose to a 7-week high on Thursday on a weaker dollar after U.S. President-elect Donald Trump provided little clarity on future fiscal policies at a press briefing.
Spot gold was up 0.5 percent at $1,196.06 per ounce, after touching a high of $1,198.58, its best since Nov. 23.
U.S. gold futures rose 0.1 percent to $1,197.80 per ounce.
In his first press briefing as U.S. president-elect, Trump presided over a wide-ranging session that lasted longer than expected but contained no details on tax cuts and infrastructure spending, analysts said.
“Politics appears to have captured the gold market’s attention and is playing a role in directing near-term prices,” HSBC analyst James Steel said in a note.
“Gold will remain finely tuned to political comments and developments from Trump and his team … if the economic nationalists, who want to impose tariffs and increase infrastructure spending, have greater influence, we believe gold will likely trade higher.”
The $1,200 level will offer stiff resistance and gold may not be able to break it easily, Steel added.
Trump’s campaign calls for tax cuts and more infrastructure spending have boosted U.S. shares and the dollar, as well as driving a selloff in Treasuries, but his protectionist statements and a flurry of off-the-cuff Tweets have kept many investors from adding to risky positions.
Source: Reuters UK