The gold price has pushed higher today, attempting to break back through the $1,200 mark as bargain hunters stepped in on the back of US dollar weakness.
At 6.48pm (GMT) gold was trading at $1,190 up from $1,180 in Friday’s trading.
Last week, the precious metal fell to its lowest level since February bringing its total losses to around $130 since Donald Trump won the US Presidential election.
Many predict Trump will push for higher interest rates which will boost the US dollar and in turn pressure the gold price as the green back becomes more attractive as an interest bearing investment.
“There’s been a very material correction in US interest rates, which is the main driver of the gold price at the moment,” said Atanas Djumaliev, head of commodities at Russia’s VTB.
“A lot speculative positions are being unwound and net shorts in gold are increasing.” he added.
Some however see the Election of Trump as a buying opportunity as some of his policies may create a lot of uncertainty and may attract investors to safe haven assets such as gold.
“With a lot of significant political uncertainty lying ahead, we expect bargain hunting in gold to support prices – gold should provide a good hedge against fallout from what political policy changes lie ahead, as well as from any correction in super-charged markets,” noted Metal Bulletin analyst William Adams
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