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Gold Prices Rise to 5-Month High

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04/13/2017 | 05:43 pm

By Ira Iosebashvili

Gold prices hit a fresh five-month high Thursday, a day after U.S. President Donald Trump said he preferred a weak dollar and low interest rates.

Gold for June delivery was recently up 0.5% at $1,248.10 a troy ounce on the Comex division of the New York Mercantile Exchange, its highest level since early November.

In an interview with the Wall Street Journal, Mr. Trump said a "too strong" dollar made it difficult to compete with other countries in trade. He also said he preferred the Federal Reserve keep interest rates low.

A weaker dollar makes gold more affordable to foreign investors. Gold also struggles to compete with yield-bearing investments when rates rise.

Signs that the Fed plans to raise rates gradually and political tensions around the globe have helped gold rise nearly 11% this year.

Those factors may be transitory, some analysts said. Prices may pull pack if tensions between North Korea and the U.S. cool, and French elections at the end of April conclude without a strong showing by populist candidates.

"Unless things get really carried away, it's unlikely that gold will move beyond $1,300 a troy ounce in any sustainable way," said Bart Melek, head of global commodities strategy at TD Securities.

May silver rose 1% to $18.48 a troy ounce.

In base metals, copper for May delivery was up 1% at $2.5695 a pound.

Write to Ira Iosebashvili at [email protected]

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