Equity World – Gold prices rose in late trading Tuesday morning (31/01) on the political uncertainty related to the immigration policy of US President Donald Trump and elections in Europe supporting prices.

LLG spot gold price was up 0.47 percent at $ 1,194.00 per ounce. That compared with a 2.5-week low Friday $ 1,180.65.

US gold futures prices rose $ 4.90 to end at $ 1,196.

Traders reported a quiet activity for the Lunar New Year holidays in many Asian countries and some caution before the Federal Reserve’s two-day meeting on monetary policy that began on Tuesday.

 

Equity World | Gold Prices Rise

Commerzbank analyst stated future direction of gold will depend on the US dollar, US monetary policy and long-term interest rates.

Also immigration restrictions added to risk sentiment and boosted gold earlier,

there is also a political risk also comes in the elections in France and the Netherlands.

The Fed raised interest rates in December and at that time signaled by three hikes in 2017 as Trump took over the government

with promises to boost growth through tax cuts, spending and deregulation.

Higher interest rates could mean the US currency higher,

which makes dollar-denominated gold more expensive for holders of other currencies, potentially reducing demand.

 

Equity World | Gold Prices Rise

Negative for gold could trigger the actions of speculators cut their net long positions in the futures market,

after two consecutive weeks of increases, according to data from the CFTC,

which also showed them improve their silver holdings to the highest since early November.

Spot silver was up slightly at $ 17.08 per ounce and palladium rose 0.11 percent to $ 736.80 per ounce. Platinum rose 0.19 percent to $ 985.50.

Analyst estimates that the gold price may rise if the dollar weakness continues. Gold prices are expected to move in Resistance range $ 1.196 – $ 1.198, and if the price drops will move in a range Support $ 1.192 – $ 1.190.

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