Gold prices climbed to peaks of almost three months on Friday and were about to make a fourth consecutive weekly gain, the uncertainty about the commercial plans of American president Donald Trump having cut the grass under the foot of Dollar, which stimulated the demand for ingots as refuge values.
Cash gold jumped 0.8 % to $ 2,774.49 per 0255 GMT and has won more than 2 % since the start of the week. Earlier in the day, prices increased up to $ 2,777.10, the highest since October 31, when they reached a record of $ 2,790.15.
US Gold term contracts increased by 0.6 % to reach $ 2,781.80.
The dollar is down more than 1% over the week, heading for its worst weekly fall in two months, making the ingot cheaper for foreign buyers. [USD/]
“The dollar slipped after Trump spoke against market expectations … This decrease comes when he has refrained from setting up aggressive customs tariffs after his inauguration,” said Jigar Trivedi, principal analyst at SECURITIVES Reliance.
Trump called for an immediate drop in interest rates and provided no clarity on customs tariffs, while investors were waiting for a series of political announcements on the part of the central banks.
The lack of clarity as to future policies has prompted market players to turn to refuge values such as gold to protect themselves from volatility.
-Elsewhere, the Bank of Japan is expected to raise its rates after a two -day meeting on Friday. The decisions of the American Federal Reserve and the European Central Bank (ECB) are scheduled for next Wednesday and Thursday, respectively.
According to the Fedwatch tool of the CME Group, traders see practically no chance of seeing the Fed raising its rates. Higher rates reduce the attraction of ingots that do not report money.
Next week, “it is possible that gold is reaching a historic summit … and the prospects remain positive,” said Trivedi.
The cash was up 1.1 % to $ 30.78 per ounce, the palladium gained 0.6 % to 997 dollars and the plate increased by $ 952.75.
The three metals were ready for weekly gains.
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