Gold defied a firmer dollar on Wednesday, building on the recent gains that have placed the yellow metal at six-week highs as investors awaited a morning press conference from President-elect Donald Trump.
Gold for February delivery rose $3.70, or about 0.3%, to $1,189.20 an ounce. A settlement at this level would be the highest since Nov. 28, according to FactSet data. Prices have moved as high as $1,192 so far in the trading session.
The U.S. ICE Dollar Index which tracks the currency against six rivals, rose 0.4% to 102.40, according to FactSet data.
The market moves were made in the lead-up to the president-elect's scheduled 11 a.m. ET appearance from Trump Tower in New York. Market watchers hope he'll address spending plans, tax reform or other factors that speculatively have driven stocks and the dollar higher over recent weeks, and depressed gold prices until lately.
Read: What time is Donald Trump's press conference on Wednesday?
Gold tends to fall when the dollar rises as a firmer buck makes assets priced in the currency, including most gold on the global markets, more expensive to buyers using other monetary units.
The greenback has piled on more than 5% in value over the past three months, fueled in large part by anticipation that Trump's fiscal policies could spur economic growth and stoke inflation.
"Traders will look for details [from Trump] on economic plans that has been expected to ramp up inflation and speed up the pace of Fed interest rate hikes, driving the U.S. dollar to 14-year highs. This so-called 'Trump trade' has struggled lately amid uncertainty about policy specifics," said Ilya Spivak, senior currency strategist with Daily FX.
Market interest rates reflect trader expectations for fewer rate hikes this year than what the Fed itself penciled in for its "dot plot" outlook issued at the December meeting, which produced the only the second rate hike in some 10 years.
Silver for March delivery split with gold's advance. It shed 6 cents, or 0.4%, to $16.79 an ounce.
Exchange-traded funds gained, with the SPDR Gold Trust up 0.1% premarket, while the iShares Silver Trust rose 0.1%. The VanEck Vectors Gold Miners ETF added 0.04%.
As for industrial metals, they cooled price gains after a strong start to the week. March copper fell less than 1 cent, or 0.2%, to $2.61 a pound. April platinum changed hands at $979.80 an ounce, down $3.00, or 0.3%, while March palladium fell $14.30, or 1.9%, to $751.25 an ounce.
Several reasons were cited for the recent price increase, including a Tuesday report that showed producer price inflation in China experienced the strongest increase in more than five years in December.
"A number of market participants are likely to have been positioning themselves ahead of the press conference that Donald Trump has announced...The market hopes that Trump will paint a clearer picture of his planned economic, trade and foreign policy," which could guide demand expectations for these types of metals, wrote commodities analysts led by Carsten Fritsch at Commerzbank, in a note. "Speculative financial investors on the [London Metal Exchange] began the new year in a highly optimistic mood and have left their net long positions - most of which are at a relatively high level - largely unchanged."
Sterling fell, equities slid, Chinese markets got a helping government intervention hand again, and gold climbed over concerns U.K. Prime Minister Theresa May is prepared to lead Britain out of the European Union's single market and as the U.S. President-elect suggested other countries could break from the bloc.Read More
By U.S. stocks have had an incredibly run over the last two months and even at these record-breaking levels there are still profits to make - at least until March, when it will be time to run for the hills, says Goldman Sachs strategist David Kostin See full story.
Gold futures drove their winning streak to four days in a row Thursday, their seventh gain in eight sessions, and posted a new, more than 7-week high. Gold for February delivery advanced $3.20, or 0.3%, to finish at $1,199.80 an ounce on the Comex division of the New York Mercantile Exchange.
Kicking off a yearlong celebration of its 225th anniversary, the United States Mint unveiled the 2017 American Liberty High Relief Gold Coin in a ceremony today at the Department of Treasury in Washington, D.C. Highlights of the anniversary coin include an ounce of .9999 fine gold, an increased level of detail, raised edge lettering with stars, and a 1792-2017 duel date.Read More
For the first time since before Thanksgiving, the price of gold has risen above $1,200 (now up 13 of the last 15 days) and outperforming all other asset classes year-to-date. This latest jump comes as the USD Index tumbles further post-Trump's press conference, breaking below the key 50-day moving-average for the first time since September...
Gold has risen above $1,200 (now up 13 of the last 15 days)Read More
By Gold prices on Thursday climbed back above the $1,200 mark for the first time since November, as the dollar fell on disappointment that President-elect Donald Trump didn't provide more details on his economic plans at a closely watched press conference.Read More
Gold futures extended their gains to three sessions in a row Wednesday, for their sixth win in seven sessions, and ended at a more than 7-week high. Gold for February delivery added $11.10, or 1%, to close at $1,196.60 an ounce on the Comex division of the New York Mercantile Exchange.Read More
Investors wait for Trump news conference * Political uncertainty also emanates from Europe * Palladium prices could see correction -analyst (Recasts, adds comment, changes dateline from Bengaluru) By Pratima Desai LONDON, Jan 11 Gold hit six-week highs on Wednesday as investors worrying about political uncertainty bought the precious metal, but dollar strength due to higher U.S.Read More
Client visits to our Los Angeles office are by appointment only for security reasons. Call or email us to schedule an appoinment.
Client visits to our Corporate Office are by appointment only for security reasons. Call or email us to schedule an appoinment.