London — Gold hit six-week highs on Wednesday as investors worrying about political uncertainty bought the precious metal, but dollar strength due to higher US rates is expected to cap gains. Spot gold was down 0.1% at 1186.45/oz at 10.44am GMT from an earlier peak at $1,191.32. US gold futures gained 0.3% to $1,188.70. The trigger for early gains was US president-elect Donald Trump’s first formal news conference at 4pm GMT. Investors will focus on what Trump has to say about trade and relations with China and his plans for the economy. "Major political risks include elections in France, the Netherlands and Germany, which could lead to tensions in the EU," said Quantitative Commodity Research analyst Peter Fertig. "The uncertainty surrounding Brexit could lead to further demand for gold from retail investors in the UK." Offsetting the political uncertainty argument is the US currency, holding near a 14-year high against a basket of currencies, making dollar-denominated commodities m...
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.