Gold price at 3 & half-months high amidst Trump's policy decision

While the market is awaiting clarity on Trump's economic policies, gold prices surged to its three and half months' high in the previous session, with the spot gold value at USD 1,260.10 and US gold futures at USD 1,257.70; post the suggestion of US rate rise.

Anticipating a tax cut, the investors' focus is on the Trump's policy speech to be held on February 28. Further, due to heavy rains & flooding, and higher mortgage rates, home sales in California is less than expected, however, it continues to strengthen the housing market despite its higher prices. Besides, the worldwide sovereign debt is also expected to reach a record high of USD 44 trillion this year, despite a slight cutback in the governments' annual borrowings.

Following a rise in the hedge funds and money managers net long position in COMEX gold, speculators hiked their net long position in bulion by 14,482 to 82,464 lots. The largest gold exchange traded fund, i.e New York's SPDR gold trust rose by 5 per cent as an effect of the geopolitical risk.

Meanwhile, the gold demand in Asia has also slowed down as an affect of political discrepancies and uncertainities in the performance of dollars. Higher capital inflow in the world equity & stocks market and an increase in the Australian gold prices as an effect of the increase in bullion prices, has further contributed to the market conditions.

Greece's Central Bank also declared its 149.1 tonnes of gold reserves but on Saturday, it kept in vaults and restored abroad.