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Tags: gold | trump | safe haven | investors

Gold Holds Near 2-Month High as Trump's Start Spurs Haven Demand

Gold Holds Near 2-Month High as Trump's Start Spurs Haven Demand

(Getty/Andreas Solaro)

Monday, 23 January 2017 06:23 AM EST

Gold held near a two-month high as investor nervousness following Donald Trump’s inauguration weakened the dollar and spurred demand for a haven.

Bullion was little changed in London after earlier reaching the highest since Nov. 22, and has advanced in all but two trading sessions so far this year. The Bloomberg Dollar Spot Index fell to near the lowest in a month after Trump began his U.S. presidency by saying he’ll focus on American interests, spurring concerns of rising trade protectionism.

Gold investors have focused on two main views since Trump’s election in November: one seeing him as a wild card upending policy on everything from trade to alliances, and the other betting that he’ll boost U.S. growth, equities and the dollar. The administration’s opening days have been marked by protests, disputes about what constitutes a fact and assertions from Trump that he’ll put “America first.”

“The market is now worrying about what would come out from the new administration,” Bob Takai, chief executive officer and president of Sumitomo Corp. Global Research Co., said by phone from Tokyo. “In this kind of very unforeseeable environment, people want to buy gold,” he said, adding that the biggest factors are the dollar and the outlook for interest rates.

Gold for immediate delivery added 0.2 percent to $1,212.46 an ounce by 10:06 a.m. in London, according to Bloomberg generic pricing. The metal is up 5.7 percent this month.

The Bloomberg dollar gauge, which tracks the greenback against 10 peers, fell as much as 0.7 percent. Following Trump’s inaugural address Friday, the administration vowed to withdraw from the Trans-Pacific Partnership and renegotiate the North American Free Trade Agreement. Trump may act on trade as early as Monday, Chief of Staff Reince Priebus told “Fox News Sunday.”

Investors have started buying gold through exchange-traded funds again. Holdings rose 0.9 metric ton on Friday to 1,776.7 tons and a fifth daily gain is the longest run since Nov. 3, data compiled by Bloomberg show. After Trump’s win, assets dropped every week through to Jan. 13 as a rally in equities and the dollar curbed demand.

 

© Copyright 2022 Bloomberg News. All rights reserved.


Markets
Gold held near a two-month high as investor nervousness following Donald Trump's inauguration weakened the dollar and spurred demand for a haven.Bullion was little changed in London after earlier reaching the highest since Nov. 22, and has advanced in all but two trading...
gold, trump, safe haven, investors
349
2017-23-23
Monday, 23 January 2017 06:23 AM
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