Gold rises

BENGALURU. — Gold rose yesterday, buoyed by safe-haven demand due to uncertainty over US policy ahead of president-elect Donald Trump’s inauguration and amid the concern over Britain’s exit from the EU.

Spot gold had risen 0,5 percent to $1 203,10 per ounce by 2.43am GMT. US gold futures were up 0,6 percent at $1 203,60 per ounce.

“Buying shows that people are looking ahead this week with Trump’s inauguration and discussions on Brexit. There is a lot of uncertainty moving forward,” said Brian Lan, MD at Singapore-based gold dealer GoldSilver Central.

“On the physical side, people are expecting good demand from China ahead of the Chinese New Year,” Lan said. The Lunar New Year falls later in January. “We expect gold to retest $1 205-$1 207 again and breaching this might see $1 220 as the next level.”

Spot gold faced strong resistance at $1 205 per ounce-$1 210 per ounce and it may hover below that or retrace towards support at $1 172, said Reuters technical analyst Wang Tao.

All eyes will be on Trump’s inauguration on Friday for any clarity on his economic plans, with investors often turning to gold as a so-called safe-haven in times of economic uncertainty.

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.

Meanwhile, Prime Minister Theresa May today will call on Britons to reject the acrimony of the Brexit referendum in a speech that some newspapers have billed as setting the stage for a “hard” exit from the EU.