Gold prices climbed to a one-month high in European trade on Monday as the dollar sank. The hike in gold prices comes as investors are losing confidence in U.S. President Donald Trump’s economic plan, favoring safe havens instead of risky assets.
Gold futures touched a session high of $1,259.20 per troy ounce, its highest level since late February. The yellow metal settled at $1,257.75 by mid-morning, up 0.8%.
Spot gold gained $13 to trade at $1,258.
Meanwhile, outside of commodities, the dollar slipped against other major currencies after President Trump failed to push through a healthcare reform bill. Investors are now questioning whether the president will be able to deliver on the growth policies promised during the election.
US Dollar Index
The U.S. dollar index fell to 98.96, down 0.6%. The index hit a 14-year high in January amid high expectations of economic stimulus under the Trump administration.
Gold and the dollar have an inverse relationship, as investors turn to safe havens when the dollar loses its value.
Silver futures were trading 1% higher at $17.91 per troy ounce. Platinum gained 0.8% to trade at $978.50.
Copper futures declined 1.3% to trade at $2.596 per pound, while palladium lost 0.7% to trade at $807.67 per ounce.
Elsewhere, oil neared the $50-per-barrel mark, falling further amid uncertainty that the OPEC production cuts will be extended beyond June.
Brent crude hit a low of $50.26 before settling at $50.54 per barrel, down 26 cents. U.S. crude lost 37 cents, trading at $47.60 per barrel.
OPEC ministers and other producers met in Kuwait to review the supply cut’s progress. OPEC members and 11 other producers agreed in 2016 to reduce their output by nearly 1.8 million barrels per day in the first six months of 2017.
Oil was also facing increased pressure as the U.S. continues to add to oil supplies. U.S. drillers added more rigs for the tenth straight week, according to data from Baker Hughes.
Latest posts by Ben Myers (see all)
- 3 Reasons Bitcoin is Still a Safe Haven Asset - June 12, 2020
- GCF Corporation and Genesis Green Initiatives Leading the Way - May 20, 2020
- Why Bitcoin Still Rules the Roost - May 13, 2020