Gold rallies to 8-week high as dollar plunges amid Trump uncertainty
Investing.com
Published Jan 17, 2017 09:01AM ET
Gold rallies to 8-week high
Investing.com - Gold prices extended its recent rally to a seventh day on Tuesday, the longest stretch of gains since November, as the U.S. dollar plunged amid lingering uncertainty over President-elect Donald Trump's economic policies.
Gold for February delivery on the Comex division of the New York Mercantile Exchange touched a session peak of $1,218.90 a troy ounce, a level not seen since November 22.
It was last at $1,215.05 by 9:00AM ET (14:00GMT), up almost $19.00, or 1.6%. Markets in the U.S. were closed Monday for a public holiday.
The U.S. dollar collapsed to a five-week low against a basket of major currencies after President-elect Donald Trump warned that the greenback was “too strong,” according to a report in the Wall Street Journal on Monday.
Anthony Scaramucci, a senior member of Donald Trump’s economic advisory council, reiterated that sentiment on Tuesday, warning about the risk from a stronger dollar.
Meanwhile, Trump warned that the border adjustment provision, a feature of House Republicans' plan that would tax imports and exempt exports, is "too complicated."
The comments added to growing uncertainty over U.S. economic policy ahead of President-elect Donald Trump's inauguration later this week.
The dollar index fell to as low as 100.44 earlier, a level not seen since December 8. It was last at 100.60, down approximately 0.9%.
Elsewhere, British Prime Minister Theresa May confirmed Tuesday that Britain will be leaving the single market, but will try to secure an ambitious free trade agreement with the European Union.
In a closely watched speech on May's plans for exiting the European Union, the prime minister also said that parliament will get a vote on the final Brexit deal before it is implemented.
Also on the Comex, silver futures for March delivery was up 35.2 cents, or 2.1%, at $17.11 a troy ounce during morning hours in New York.
Meanwhile, platinum tacked on 0.35% to $990.00, while palladium rose 1.1% to $757.50 an ounce.
Elsewhere in metals trading, copper futures dropped 5.0 cents, or about 1.9%, to $2.640 a pound.
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Written By: Investing.com
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