Gold prices settled with a modest gain for a second-straight session on Tuesday, getting a boost from political uncertainty in the U.S., as investors awaited Federal Reserve Janet Yellen’s testimony to Congress this week for cues on the timing of expected interest-rate hikes.
Prices for the yellow metal gave up earlier losses as the dollar weakened and U.S. equities fell in the immediate wake of Donald Trump Jr.’s release of emails linked to a meeting with a Russian lawyer last year.
Gold for August delivery GCQ7, +0.31% rose $1.50, or 0.1%, to settle at $1,214.70 an ounce. Prices for the metal had seen a 0.3% rise Monday after a solid U.S. jobs report issued late last week contributed to a drop in prices to their lowest level in about four months.
“It appears that the Donald Trump Jr. email release gave gold bugs a boost,” said Michael Armbruster, managing partner at brokerage firm Altavest.
n fact, U.S. Treasurys “also participated in the rally as any threat to the Trump growth agenda and U.S. equities is a positive for safe-haven assets,” he said. “What is interesting is that gold has been able to hang on to its intraday gain while the rally in [Treasurys] has dissipated.”
Gold prices had earlier touched lows under $1,208 an ounce on Comex as the market gears up for Yellen’s testimony on monetary policy to Congress on Wednesday and Tuesday. The Fed’s Beige Book report is also due Wednesday.
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