Gold rises to 7-week high

The Herald (Zimbabwe) - - Business -

BEN­GALURU. — Gold rose to a seven-week high yes­ter­day on a weaker dol­lar af­ter US pres­i­dent-elect Don­ald Trump pro­vided lit­tle clar­ity on fu­ture fis­cal poli­cies at a press brief­ing.

Spot gold was up 0,4 per­cent at $1 196,06 per ounce, af­ter touch­ing a high of $1 198,58, its best since Novem­ber 23.

US gold fu­tures fell 0,2 per­cent to $1 193,70 per ounce. In his first press brief­ing as US pres­i­dent-elect, Trump presided over a wide-rang­ing ses­sion that lasted longer than ex­pected but con­tained no de­tails on tax cuts and in­fra­struc­ture spend­ing, an­a­lysts said.

“There is some kind of un­cer­tainty in Trump’s poli­cies and the dol­lar’s up­side is also be­ing ques­tioned by the mar­kets,” Arg­onaut Se­cu­ri­ties an­a­lyst Helen Lau said.

“We need more pos­i­tive devel­op­ment in US eco­nomic fun­da­men­tals be­fore the dol­lar can go higher,” Lau said, adding that the mar­kets were dis­ap­pointed in Trump’s speech.

Trump’s cam­paign calls for tax cuts and more in­fra­struc­ture spend­ing have boosted

US shares and the dol­lar, as well as driv­ing a sell-off in trea­suries, but his pro­tec­tion­ist state­ments and a flurry of off-the-cuff tweets have kept many in­vestors from adding to risky po­si­tions.

The dol­lar in­dex, which tracks the US cur­rency against a bas­ket of six ma­jor coun­ter­parts, was down 0,3 per­cent at 101,470, hav­ing hit a one-week high on Wed­nes­day.—

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