Gold prices rise as Trump takes office

Trump's protectionist statements, with mixed promises of tax cuts and infrastructure spending, have increased demand for gold as a safe-haven.

Gold prices rose today to remain on track for their fourth weekly gain in a row, buoyed by a weaker dollar ahead of the inauguration of U.S. President-elect Donald Trump later in the day.
Spot gold was up 0.3 percent at $1,207.80 (Dh4,436.01) per ounce by 0315 GMT, while U.S. gold futures climbed 0.5 percent to $1,207.50 (Dh4,434.91) per ounce. This was a slight increase to Dubai gold prices in the morning which were at Dh4,433.36 per ounce. "There is a bit of safe-haven buying ahead of Trump's inauguration," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
Trump's protectionist statements, with mixed promises of tax cuts and infrastructure spending, have increased demand for gold as a safe-haven. The metal has risen more than 7 percent since dropping to its lowest in more than 10-1/2 months in December. Spot gold may approach resistance at $1,219 per ounce again as it failed to break support at $1,196, according to Reuters technical analyst Wang Tao.
Better-than-expected jobs and housing data reinforced the view that the U.S. economy is sufficiently robust to warrant rate rises, turning back recent falls for the dollar and pushing 10-year bond yields to their highest since January 3. A strong dollar makes gold more expensive for holders of other currencies. 
Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion while boosting the dollar, in which it is priced
 

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