Gold Hits Fresh Three-Month High -- Update
February 27 2017 - 3:45PM
Dow Jones News
By Stephanie Yang and Katherine Dunn
Gold prices closed at the highest in more than three months on
Monday, as investors awaited comments from President Donald Trump
this week that could clarify the path of economic policy and fiscal
stimulus.
Gold for April delivery edged up 50 cents to $1,258.80 a troy
ounce on the Comex division of the New York Mercantile Exchange,
closing out a third straight day of gains. Prices settled at the
highest level since Nov. 10, continuing to recoup losses that the
precious metal suffered following the presidential election.
Traders will be watching President Trump's speech to Congress on
Tuesday for more information on how the administration plans to
proceed on key issues such as tax reform and infrastructure
spending.
Gold has also benefited from political risks linked to the
coming election in France and Britain's efforts to leave the
European Union, Commerzbank said in a note. Mixed expectations
about whether the Federal Reserve will raise rates next month have
also helped support gold, the bank said.
However, demand for gold may falter as other financial markets
stay strong, said Carsten Menke, commodities research analyst at
Julius Baer.
"While we acknowledge the Trump-related upside risks for gold,
we need to take into consideration that his actions did not have a
negative impact on the economy and financials markets yet," Mr.
Menke said.
Copper prices also ended higher, reversing losses from earlier
in the session as traders weighed the impacts of potential supply
disruptions.
Futures for May delivery settled up 0.1% at $2.6980 a pound,
after trading as low as $2.6675 early Monday.
"[There's] plenty of rhetoric around supply side issues versus
China headwinds but in truth nothing has changed since last
week...as such we are in 'no-mans land' here," said Matt France,
head of institutional sales in Asia at brokerage Marex Spectron, in
a Monday note.
Workers striking over pay at Chile's Escondida copper mine,
majority-owned by BHP Billiton Ltd., have said they have the funds
to remain on strike for over two months, Bloomberg reported.
Meanwhile, Freeport-McMoRan Inc. remains locked in a standoff with
the Indonesian government over permission to export copper
concentrate produced at the Grasberg mine.
The London Metal Exchange's three-month copper contract closed
up 0.1% at $5,934.00 a metric ton. Other base metals ended the day
mixed.
Aluminum prices rose 0.8% to $1,900 a ton and nickel prices rose
1.7% to $11,045 a ton. Zinc prices fell 0.8% to $2,806 a ton, tin
fell 1% to $18,955 a ton and lead fell 0.2% to $2,255 a ton.
Ed Ballard contributed to this article.
Write to Stephanie Yang at stephanie.yang@wsj.com and Katherine
Dunn at Katherine.Dunn@wsj.com
(END) Dow Jones Newswires
February 27, 2017 15:30 ET (20:30 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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