Gold futures prices increased in early trading on Monday, hitting its highest level 11 weeks highs as investors sought the safety of the yellow metal is seen amid growing concerns over political risk in all parts of the world.
Gold for April delivery on the Comex Exchange rose to a session peak of $1,232.20 a troy ounce, the most since Nov 11.
Spot gold rose 0.2 per cent to $1,222.74 an ounce, having earlier hit $1,225.06, within touching distance of last week’s peak of $1,225.30.
Investors have been mound in gold because they are the eyes of political risk elements, with the administration of President Donald Trump on the back foot over immigration and other policies.
In euro zone, traders monitoring the developments in the countries in which the anti-establishment movements are gaining traction before the election.
Uncover the French far-right of presidential candidate Marine Le Pen’s statement vowed to take their country from the euro zone during the weekends, underscoring the political risk in the largest single market in the world.
Since the beginning of this year we’ve seen the USD constantly weaker, but the actual demand of the (major consumers) as China and India remains weak and negative for gold.
China’s net imports of gold in December, at 51.51 tonnes, down 60 per cent from December 2015.
Meanwhile, gold demand in India fell 21.2 per cent in 2016 compared to last year to 675.5 tons of new bases such customers compel the disclosure of tax laws for purchases above 200,000 rupees ($ 2,967) in less demand.
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