Futures prices for gold were sharply higher in morning trading on Monday to highs two months, as the US dollar sank against other major currencies amid uncertainty about the economic policies of the new US president Donald Trump.
Gold for February delivery on the Comex Exchange touched a session high of $1,219.40 a troy ounce.
Spot gold was up 0.64 per cent at $1,217.26 per ounce. Earlier in the session, it hit $1,219.43, the highest since Nov. 22.
Greenback index rose, which tracks the dollar’s strength against a trade-weighted basket of six major currencies, was down nearly 0.4% at 100.36 in early trading, after falling to 100.17 earlier, a price not seen since Dec. 8.
Sell the dollar amid a disappointment that the inauguration of US President Donald Trump on Friday’s speech proved light on details regarding his plans to stimulate the economy.
Analysts said with the lack of a clear political direction from Trump, the movement of the market is a sign that risk aversion on the table.
American President said Sunday that he will begin talks with Mexico and Canada to renegotiate the North American Free Trade Agreement (NAFTA). In addition, Trump said that he would withdraw the United States out of the Trans-Pacific Partnership (TPP).
At the same time, will receive market players to work to watch economic news for new signs of economic recovery in the week, with advanced reading on Friday for the growth of the United States in the spotlight.
Gold was trading 0.63 per cent, or Rs 181, higher at Rs 28,806 per 10 gram at the MCX on account of buying by jewellers, retailers and industries.
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