Sun, Oct 30, 2016 - Page 14 News List

Gold futures rally to three-week high on Clinton investigation

Bloomberg

Gold futures rallied to a three-week high after the FBI said it is reopening an inquiry into Democratic US presidential candidate Hillary Rodham Clinton’s use of private e-mail while US secretary of state, boosting demand for the metal as a safe haven.

The politically explosive development comes less than two weeks before the presidential election.

Clinton held an average four-point lead over Republican US presidential candidate Donald Trump in polls that include independent candidates as of Friday, according to Real Clear Politics.

Bullion futures for December delivery on Friday gained as much as 1.3 percent to US$1,285.40 per ounce, the highest since Oct. 4, in electronic trading after the settlement.

Before the FBI letter to US Congress came out, futures had been stuck in a narrow trading range, with price swings measured by the 60-day historical volatility near the lowest in almost two years.

“It’s a bored market that found a driver,” said Tai Wong, the director of commodity products trading at BMO Capital Markets in New York. “One might consider this a cheap bet for a weekend surprise.”

The December contract settled at US$1,276.80, or 0.6 percent higher than Thursday’s close, at 1:42pm on the Comex in New York. The contract is 0.7 percent higher than last week’s US$1,267.70 per ounce.

Bullion’s 25 percent first-half surge has fizzled on mounting expectation that the US Federal Reserve will raise interest rates soon, reducing the appeal of owning non-yielding assets.

While the US posted its fastest growth in two years, the data failed to resolve the debate about whether the world’s largest economy is emerging from an extended funk.

Other precious metals:

Silver for December delivery rose on Friday, settling at US$17.796 per ounce, 1.7 percent higher than last week’s US$17.493.

Platinum and palladium futures rose on the New York Mercantile Exchange.

Base metals:

Copper added US$0.03 to US$2.19 a pound (454g).

Aluminum climbed as much as 0.6 percent in London and has gained more than 10 percent since Friday last week’s close in Shanghai.

Additional reporting by AP

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top