Precious metals extended gains on Monday (23 January) with gold leading the way, after US President Donald Trump unveiled a protectionist ‘America First’ stance at his inauguration, and subsequently threatened to rip up global trade agreements sending the dollar lower.
At 3:52 pm GMT, the Comex gold futures contract for February delivery was up 0.85% or $10.30 at a two-month high of $1,215.20 an ounce, while spot gold was up 0.52% or $6.33 at $1,216.65 an ounce.
Carlo Alberto De Casa, chief analyst at ActivTrades, said: “It has been a good start to the year for the yellow metal – just as it was in 2015 and 2016. From the bottom reached in the second half of December at $1,122 an ounce, gold prices have overtaken the resistance area of $1,200.
“If you add in the markets’ fear around the future policy decisions of Trump, which has pushed down the dollar, there could be further space for the recovery of gold.”
Elsewhere, Comex silver rose 0.84% or 14 cents at $17.18 an ounce, while spot platinum was up 0.04% or 39 cents to $978.59 an ounce. Meanwhile, the palladium rally stalled, after traders cashed in on the recent spike, with the precious metal shedding 1.95% or $15.39 to $773.17 an ounce. However, still up by over 15% in the year to date, atop a 20% rise in 2016.
Source: International Business Times
