Thursday, 10 November 2016
NEW YORK/LONDON: Spot gold prices surged nearly 5 percent with Donald Trump’s surprise U.S. presidential election win spurring purchases of physical gold.
The flurry of buying on physical markets mostly took place in Europe, after Trump’s victory was declared, when the price of spot gold surged by nearly 5 percent to a six-week high of $1,337.40 an ounce.
Gold gave up gains during U.S. trading and turned slightly negative, as the dollar moved higher and Wall Street stocks rose sharply.
Ahead of the election, analysts widely expected that a Trump victory would cause gold prices to rally as investors sought refuge in perceived safe-haven assets such as gold.
Demand for physical gold and silver in the United States rose in the weeks prior to the vote, but in contrast to Europe there was little sign of buying in the United States on Wednesday.
According to fund manager Richard Xu, Chinese investors piled into physically backed gold exchange-traded funds, with volume in the HuaAn ETF as high as 1.5 billion yuan ($221.55 million).
Source by: Internet