Doubt is back through financial markets.
From important doubts about Brexit to UK Prime Minister Theresa May keeping her job to skepticism about a US-China trade deal occurring on the sidelines of the G20 meeting, risk-off is noticeable all around. Also, that is pushing investors toward safe-haven, especially the yellow metal.
However, there's a caution with gold. This week being a holiday-shortened stretch could see thin volumes from brokers on expanded break after Thursday's Thanksgiving or still moving back to base. That may make them playful of taking outsized positions ahead of the holiday.
“Gold is seeing a most uncertain week, with open interest in options very high at nearly 1.5 million contracts while Brexit headlines, uncertainty over trade talks and the G20, and the Thanksgiving holiday all come together at once,” said George Gero at RBC Wealth Management in New York.
COMEX gold futures for December delivery settled up $2.10, or 0.2 % at $1,225.30 per troy ounce, after a session high at $1,225.90
A week ago, December gold increased 1.4% for its finest weekly gain in five months as hedgers rushed to the relative security of the bullion after the pounding taken by sterling from Britain’s EU-exit grief.
After her unpopular Brexit draft revealed in the previous week, May was battling to stop a developing rebellion from the Tory right as attempts for a no-confidence vote against her builds.
The U.K. political drama aside, gold was also
Also providing some breeze to gold late a week ago were dovish remarks by some Federal Reserve speakers that cast some uncertainty on the central bank's pledge to raise interest U.S. rates again next month, for the fourth time this year.
TD Securities said in a note on gold that a few speculators were still building short positions in the yellow metal and the dollar might eventually be chosen for the bullion.
“We maintain the view that a fundamental shift in the strong dollar regime will be needed before gold can break materially higher,” it said.
The dollar index, a contrarian wager to gold, was stable at 96.35 in Monday's Asian trade, not far from the 16-month highs of 97.53 hit seven days ago.
Among other valuable metals on COMEX, silver fell 0.2% to $14.35 per ounce.
Palladium slid 1.1 % to $1,141.40 per ounce, while sister metal platinum increase 0.9% to $854.
In base metals, COMEX copper decrease 0.5% to $2.79 per pound.
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