Gold eye’s a weekly gain despite Trump comments

  Jan 26 (Reuters) - Gold prices edged up on Friday, after
falling from 1-1/2-year highs in the previous session, as the
dollar remained weak despite U.S. President Donald Trump backing
a stronger currency. 
    Spot gold        rose 0.3 percent to $1,351.40 per ounce at
0333 GMT. The metal has gained 1.5 percent so far this week. 
    Spot gold hit 1,366.07 on Thursday, highest since Aug. 3,
2016, reversing gains after Trump told CNBC in Davos,
Switzerland, that he wants to see a strong dollar.              
    U.S. gold futures         were down 0.9 percent at $1,351.10
per ounce. 
    Trump's comment contradicted comments made by Treasury
Secretary Steven Mnuchin a day earlier.              
    The dollar weakness is continuing to support gold prices,
helping to hold them steady despite Trump's comments, said Peter
Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
    "There is some very good support for gold on the downside
around $1,340 and a resistance around $1,360," he said. 
    The dollar index       , a measure of the greenback against
a basket of currencies, hit its weakest since December 2014 at
88.438 on Thursday. It was last down 0.3 percent at 89.154.
       
    "While catching short-term speculators off guard, the gold
price retracement will not threaten long-term positions whose
view are cemented around a probable equity market correction and
an extension of the U.S. dollar downtrend," Stephen Innes, APAC
trading head at OANDA said. 
    Gold could break above $1,500 an ounce this year for the
first time since its 2013 crash, GFMS analysts at Thomson
Reuters said on Thursday, with the risk of a drop in surging
equities and political instability boosting its appeal as a safe
investment haven.    

Reuters

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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