Gold saw renewed safe-haven demand, especially as more traders grow cautious on speculation that Trump’s policies may not move forward in a timely fashion.
Precious metals also strengthened after data on Friday revealed U.S. wage growth slowed, which diminished the chance of a Federal Reserve interest rate hike this year.
Uncertainty about economic policy and the pace of rate increases “may help spur purchases of the metal as a short-term safe haven by central banks and investors,” Eily Ong, an analyst at Bloomberg Intelligence, wrote in a research note.
Traders have also grown more bullish over the metal, with net-long positions, or wagers on continued increases, in gold rising 21% to 72,067 futures and options for the week ended January 31, the highest level since December 6.
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