- Gold’s 6-Day Winning Streak Ranks as Best Rally Since Brexit
Gold prices are steadily climbing as equities retreat and concern deepens among investors that Donald Trump won’t deliver on pro-growth promises for the U.S. economy.
Bullion for immediate delivery has gained 4 percent in six days, heading for the biggest advance since the aftermath of the Brexit vote in late June. Prices rose 0.2 percent to $1,247.40 an ounce at 12:45 p.m. in London.
Equities dropped across the globe on Tuesday as investors began to question the U.S. president’s ability to enact his pro-growth policies, casting doubt on the so-called reflation trade.
“The expectation of sweeping tax cuts and extensive infrastructural measures from the Trump administration, which would drive up inflation and result in bigger Fed rate hikes, appears to be dwindling,” analysts at Commerzbank AG, including Eugen Weinberg, wrote in a note. “Trump has so far failed to follow up on any of his grand announcements.”
Holdings in the SPDR Gold Shares exchange-traded fund rose 4.15 metric tons to 834.4 tons on Tuesday.
In other precious metals:
- Spot silver little changed at $17.5272 an ounce.
- Platinum was down 0.3 percent at $967.11 an ounce.
- Palladium advanced 0.7 percent to $790.79 an ounce.