PRECIOUS-Gold rises as US political uncertainty breeds risk-aversion
December 24, 2018
Gold prices climbed on Monday, holding ground near a six-month high hit last week, as investors remained concerned about political uncertainty in the United States and global economic slowdown.
Spot gold was up 0.6 percent at $1,263.11 per ounce as at 0717 GMT. The metal had hit its highest since early July at $1,266.40 on Thursday.
U.S. gold futures were up 0.7 percent at $1,266.4 per ounce.
A partial U.S. government shutdown was almost certain to drag through the Christmas holiday after the Senate adjourned on Saturday without breaking an impasse over President Donald Trump’s demand for more funds for a border wall.
“We can see support around $1,250. Prices are likely to stay around the current levels until the end of this year.”
Hedge funds and money managers raised their net long positions in Comex gold to a six-month high in the week to Dec. 18, indicating improved interest in the metal.
Also, holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.5 percent to 772.67 tonnes on Friday.
Among other metals, palladium rose 0.5 percent to $1,237.59 per ounce.
Silver climbed 1 percent to $14.73, while platinum gained 0.6 percent to $791.90 per ounce.