• Gold futures on the COMEX division of the New York Mercantile Exchange rose on Friday as traders began to expect that U.S. President Donald Trump's reforms would take longer to implement.
The most active gold contract for March delivery rose 6.9 U.S. dollars, or 0.55 percent, to settle at 1,258.30 U.S. dollars per ounce.
• U.S. Treasury Secretary Steven Mnuchin told U.S. media that he hopes to pass tax reform by August. Analysts believe that expectations for tax reform were for it to be implemented much quicker than August.
As a result, investors are adjusting their expectations for the implementation of many of the presidents economic policies. This gave support to the precious metal as many of the pressures put on gold earlier in the year were due to expectations over the newly elected president.
• A report released by the U.S. Census Department on Friday also gave support to the precious metal as the report showed new home sales increasing to a 555,000 level during the month of January, a figure which was below analyst expectations. Investors have noted rising supply and falling prices, which put pressure on new home sales, and added support to gold.
• Investors are waiting for several key economic reports due next week. The durable goods orders report is due Monday, gross domestic product and international trade in goods is due Tuesday, personal income and outlays is due on Wednesday, weekly jobless claims is due on Thursday, and Friday will see several Fed officials giving speeches, including Fed Chair Janet Yellen.
• Gold prices held firm on Monday near 3-1/2-month highs hit in the previous session as investors await more clarity on President Donald Trump's economic policy.
• Spot gold was little changed at $1,256.61 per ounce at 0034 GMT. The metal hit its highest since Nov. 11at $1,260.10 in the previous session.
• Hedge funds and money managers raised their net long position in COMEX gold to the highest in nearly three months during the week to Feb. 21. Speculators raised their net long position in bullion by 14,482 to 82,464 lots.
• Main Street and Wall Street look for the gold market to extend its three-month highs next week on ideas the Federal Reserve will hike interest rates cautiously, political uncertainty and technical-chart follow-through.
Twenty traders and analysts took part in a weekly Wall Street survey. Thirteen voters, or 65%, see gold prices rising by next Friday. Two, or 10%, said lower, while five voters, or 25%, are neutral or look for a sideways market.
Meanwhile, 974 respondents took part in a Main Street online survey. A total of 661 participants, or 68%, called for gold to rise, while 221, or 23%, saw lower prices. The remaining 92 voters, or 9%, were neutral.
• Ira Epstein, director of the Ira Epstein division of Linn & Associates, looks for gold to rise some more, commenting that polls keep showing the Netherlands and France with political parties winning over people against immigration.
• “People won’t forget Brexit or President Trump’s win when the pollsters said they wouldn’t win,” Epstein said. “As such, once the Fed Minutes didn’t solidify a March rate hike, gold made new highs for this move.”
• Phillip Streible, senior market strategist with RJO Futures, also commented that gold futures will continue to build on the idea that the Federal Reserve will continue to maintain low interest rates.
• “Geopolitical uncertainty, along with uncertainty surrounding Trump’s policies, French elections and Greek bailout, should also support,” he said. “I believe gold will continue to move higher to $1,300 over the next couple weeks. “
• Silver for March delivery rose 22.2 cents, or 1.23 percent, to close at 18.339 dollars per ounce.
Reference: Xinhua, Reuters, Kitco
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