Gold hits 3-1/2-month high as Trump inflation trade fades | Reuters
By Marcy Nicholson and Maytaal Angel | NEW YORK/LONDON NEW YORK/LONDON Gold reached its highest in 3-1/2 months on Friday as the dollar fell to a one-week low after the new U.S. Treasury chief poured cold water on the 'Trumpflation trade' that had boosted the greenback this year.Treasury Secretary Steven Mnuchin said on Thursday that any steps U.S. President Donald Trump's administration takes on policy would probably have only limited impact this year, though he wants to see tax reform passed by August.The comments suggested much work was still needed on the sweeping tax plan that Mnuchin called his main priority, and which investors had bet would stoke growth and inflation this year.'We've got a vacuum of (U.S
By Marcy Nicholson and Maytaal Angel
| NEW YORK/LONDON
NEW YORK/LONDON Gold reached its highest in 3-1/2 months on Friday as the dollar fell to a one-week low after the new U.S. Treasury chief poured cold water on the "Trumpflation trade" that had boosted the greenback this year.Treasury Secretary Steven Mnuchin said on Thursday that any steps U.S. President Donald Trump's administration takes on policy would probably have only limited impact this year, though he wants to see tax reform passed by August.The comments suggested much work was still needed on the sweeping tax plan that Mnuchin called his main priority, and which investors had bet would stoke growth and inflation this year."We've got a vacuum of (U.S. domestic) policy, real (interest) rates going down, the dollar going sideways and geopolitical (jitters) around the world ... all helping gold," ICBC Standard Bank analyst Tom Kendall said."There is apparently a move of institutional investor money into gold and there are usually very good reasons for that."
Spot gold XAU= was up 0.6 percent at $1,256.75 an ounce by 2:26 p.m. EST (1926 GMT), having touched its highest since Nov. 11 at $1,260.10 earlier, zeroing in on the 200-day moving average. It was on track to finish the week higher for the fourth straight week.U.S. gold futures GCcv1 settled up 0.55 percent at $1,258.30.Tempering gains in bullion, a poll on Friday suggested French presidential candidate Emmanuel Macron would beat far-right leader Marine Le Pen, who has promised a referendum on European Union membership.
Key global stock markets fell as investors scaled back bets that Trump's policies would benefit economic growth. The dollar later pared losses. [MKTS/GLOB] [USD/]Holdings of the largest gold-backed exchange-traded fund, New York's SPDR Gold Trust HLDSPDRGT=XAU, have risen more than 5 percent this month on geopolitical risk."These dollar-denominated and perceived safe-haven precious metals have risen during a time when Wall Street has repeatedly hit new all-time highs and despite the dollar holding near its multi-year highs," said Fawad Razaqzada, technical analyst for Forex.com, adding that precious metals appeared poised to rise further in the coming weeks.
"The metals' remarkable performance may suggest that investors are positioning themselves up for a major risk-off event – such as a collapse in the US stock markets."Silver XAG= rose 0.8 percent to $18.30 per ounce, having touched its highest in 3-1/2-months at $18.40. Silver has gained about 1.8 percent this week in what could be its ninth straight weekly gain.Platinum XPT= rose 1.8 percent to $1,023.75 per ounce, after hitting its highest since early October at $1,028.60. Palladium XPD= fell 0.7 percent to $767.25. (Additional reporting by Arpan Varghese and N R Sethuraman in Bengaluru; Editing by Susan Fenton and Chizu Nomiyama)
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By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.