Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as continued political uncertainty in the U.S. and Europe gave support to the precious metal.
As there was no major economic reports released on Wednesday, investors are slowly moving to the precious metal as they become increasingly concerned over the potential election of Marine LePen in France, and the uncertainty over policies of U.S. President Donald Trump.
Analysts note that Marine LePen has stated that she wants to bring France out of the Eurozone, and that President Trump’ s travel ban is facing significant opposition in the U.S. courts. Both factors are positive to gold and have left investors worried about the state of the global economy.
Gold was given support as the U.S. Dow Jones Industrial Average fell by 33 points, or 0.17 percent as of 1800 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.
The precious metal was given additional support as the U.S. Dollar Index fell by 0.07 percent to 100.33 as of 1800 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
Investors are waiting for the release of several Fed speeches and economic reports later this week. Weekly jobless claims and a speech by St. Louis Fed President James Bullard is due on Thursday and the consumer sentiment report is due on Friday.
Silver for March delivery fell 5.1 cents, or 0.29 percent, to close at 17.705 dollars per ounce. Platinum for April delivery added 6.5 dollars, or 0.64 percent, to close at 1,019.40 dollars per ounce. Enditem