Gold prices slipped on Monday as the dollar rose and equities climbed, but political and economic uncertainties in the United States and Europe are expected to provide support for now.<\/p>\n
The spot price XAU= was down 0.7 percent at $1,225.71 an ounce by 2:51 p.m. EST (1951 GMT), falling further below last week’s three-month high of $1,244.67. U.S. gold futures GCcv1 settled down 0.8 percent at $1,225.80.<\/p>\n
The dollar hit a two-week high against the yen JPY= as investors focused again on the U.S. reflation trade which dominated in the aftermath of Donald Trump’s election as U.S. President in November, but has stalled this year.<\/p>\n
A higher U.S. currency makes dollar-denominated commodities more expensive for holders of other currencies, potentially subduing demand.<\/p>\n
A gauge of global equity markets advanced .MIWD00000PUS and bond yields US10YT=RR rose.<\/p>\n
In Europe, national elections this year starting with the Netherlands at the end of March make for an uncertain political outlook.<\/p>\n
The first round of the presidential elections in France follows in April, with the possibility of a victory for Marine Le Pen of the National Front arousing much uncertainty.<\/p>\n
“Support for gold because of politics will hold this side of the French election,” said Danske Bank analyst Jens Pederson.<\/p>\n
“Le Pen’s comments on euro membership are very much on the radar.”<\/p>\n
Le Pen has rattled investors by promising to take France out of the euro zone and to hold a referendum on EU membership.<\/p>\n
“Global uncertainty from the U.S., Europe and on the Korean front will drive global prices high again,” said Geofin Comtrade Ltd’s head of research, Hareesh V.<\/p>\n
North Korea said on Monday it had successfully test-fired a new type of medium-to-long-range ballistic missile the previous day, claiming advances in a weapons program it is pursuing in violation of U.N. resolutions.<\/p>\n
“Against soft physical demand for gold, the market remains fixated upon the U.S., for now,” Standard Chartered Global Research said in a note.<\/p>\n
“Our economists believe a March (U.S. interest) rate hike is unlikely and they do not think the Fed is in a rush to hike rates again.”<\/p>\n
Strong demand for gold can be seen on COMEX, where speculators raised their bullish gold bets to a two-month high, U.S. government data showed on Friday.<\/p>\n
Meanwhile silver XAG= eased 0.7 percent to $17.83 per ounce, while platinum XPT= lost 1.2 percent to $998.50 per ounce.<\/p>\n
Palladium XPD= was down 1.4 percent at $773.25 per ounce, after reaching the highest since Jan. 25 at $786.90.<\/p>\n
Source: Reuters<\/p>\n","protected":false},"excerpt":{"rendered":"
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