Gold Price Marks 3-Month Highs
Gold futures rose to the highest in more than 2 months on uncertainty in geo-political issues, and the possibility of no rate hikes soon.
Friday, the data showed US wage growth slowed, reducing the odds of Fed rate increases this year and sending Gold to the biggest weekly gainer since June 2016.
Uncertainty about US President Trump’s domestic fiscal stimulus policies and his administration’s spats with traditional allies helped push hedge funds’ Bullish bets on Gold to the most in almost 2 months.
- April Gold ended Monday’s session + 11.70 (+1.0%) at $1232.30 oz
- March Silver closed Monday’s session +0.21 higher (+1.2%) at $17.70 oz
Bullion has risen 6.9% this year as investors seek a haven amid President Trump’s recent disagreements with Germany, Japan, Mexico and China. Traders are cautious that President Trump’s policies aimed at paring regulation, cutting taxes and keeping jobs within the US borders may not move forward as quickly as anticipated.
Uncertainty about economic policy and the pace of rate increases “may help spur purchases of the metal as a short-term safe haven by central banks and investors,” an analyst wrote in a research note.
Holdings in SPDR Gold Shares (NYSEArca:GLD), the largest exchange-traded fund backed by bullion, rose for 3 days running through Friday, the longest stretch of gainers since October.
The net-Long position, or wagers on a rally, in Gold gained 21% to 72,067 futures and options for the week ended 31 January, according to US Commodity Futures Trading Commission (CFTC) data released three days later. That’s the highest mark since 6 December.
|NYSEArca:GLD||117.67||6 February 2017||1.83||117.07||117.7||116.74||6,730,598|
|HeffX-LTN Analysis for GLD:||Overall||Short||Intermediate||Long|
|Bullish (0.26)||Neutral (0.19)||Neutral (0.16)||Bullish (0.44)|