Gold benefits from shift to safe-haven assets amid concern about free trade
Bengaluru — Gold prices rose on Wednesday to a one-week high on a weaker dollar following US Secretary of State Rex Tillerson’s sudden dismissal, which invigorated the concern of protectionist policies hampering global risk appetite. Spot gold rose 0.12% to $1,327.56/oz at 4.02am GMT. It touched $1,329.22/oz during the session, its highest since March 7. US gold futures for April delivery rose 0.09% to $1,328.20/oz. On Tuesday, President Donald Trump fired Tillerson after a series of public rifts over policy on North Korea, Russia and Iran, replacing his chief diplomat with loyalist Central Intelligence Agency (CIA) director Mike Pompeo. Risk aversion was back on the table following the unexpected news of Tillerson’s dismissal and the appointment of Pompeo, said OCBC analyst Barnabas Gan. "Pompeo is a supporter of Trump’s trade policy and could help advance his agenda of imposing it on US trading partners … all this uncertainty and risk aversion leaves gold as a safe-haven option," ...
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