Gold prices rise

BENGALURU. — Gold prices rose yesterday to hover near seven-week highs hit the day before, with safe-haven demand boosted ahead of a speech in which British Prime Minister Theresa May is expected to discuss plans for a “hard Brexit”.

Spot gold had risen 0,3 percent to $1 205,93 per ounce by 3.24am GMT. On Monday, it marked its highest in more than seven weeks at $1 207,86. US gold futures were up 0,8 percent at $1 205,50 per ounce.

“Gold is going to do very well in the first half of the year due to Brexit concerns, Chinese currency pressure and uncertainty surrounding Donald Trump’s policies,” said Richard Xu, fund manager at China’s biggest gold exchange-traded fund (ETF), HuaAn Gold.

“Stock valuations are pretty high and bonds are not going to perform much better than what they are doing now. There are very few alternatives for liquidity to go to and gold prices will find some support,” Xu added.

Britain would not seek a Brexit deal that left it “half in, half out” of the EU, Prime Minister Theresa May would say on Tuesday, her office said, in a speech setting out her 12 priorities for upcoming divorce talks with the bloc.

Markets will also look to US president-elect Donald Trump and his plans for the US economy after his inauguration on Friday.

A trade war between the US and China and a strengthening dollar are among the biggest threats to a brightening global economic outlook, according to leading economists at the World Economic Forum (WEF) in Davos.

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, instead opting for gold.