London — Gold rose on Monday, touching its highest in two months as unease over the economic policies of US President Donald Trump pushed investors towards safer assets and the dollar and US bond yields fell. At his inauguration, Trump promised to put "America first", while his administration said it would withdraw from or renegotiate important trade agreements, raising the fear that a protectionist White House could reduce global trade. Uncertainty over Trump’s policies sent the dollar to a one-and-a-half-month low against a basket of currencies, while bond yields slipped from recent highs. A weaker dollar makes gold cheaper for holders of other currencies, while lower yields reduce the opportunity cost of holding nonyielding bullion. Spot gold was up 0.2% at $1,212.06/oz at 11.10am GMT. It earlier touched $1,219.43, its highest since November 22. US gold futures were 0.6% higher at $1,212. "The story is one of a weaker dollar and political uncertainty," said Danske Bank analyst Je...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.