Gold Up on Political Uncertainty in US

Posted By: Religare
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Gold futures closed higher in the international market on Wednesday getting a boost from political uncertainty in the U.S., as investors awaited Federal Reserve Janet Yellen's testimony to Congress this week for cues on the timing of expected interest-rate hikes.

Gold Up on Political Uncertainty in US

Rising real interest rates lower the opportunity costs of holding gold because the metal provides no yield, and entices investors to rotate into riskier assets like stocks. Higher rates may also boost the value of the dollar, which usually moves in the opposite direction of the gold price.

Analysts said the precious metal has found support as a haven investment amid turmoil in the White House following Donald Trump Jr.'s release of emails linked to a meeting with a Russian Lawyer last year.

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