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Gold Back Above $1,480 on Trump Impeachment Watch

Published 19/12/2019, 20:45
© Reuters.
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Investing.com – Gold prices shot back above $1,480 an ounce on Thursday as investors sought the yellow metal as a hedge against U.S. political uncertainties after President Donald Trump became only the third U.S. president impeached .

Gold futures for February delivery on New York’s COMEX settled up $5.70, or 0.4%, at $1,478.70 per ounce. It earlier hit a one-week high of $1,485.65.

Spot gold, which tracks live trades in bullion, rose $3.81, or 0.3%, to $1,479 by 3:29 PM ET (20:29 GMT).

Gold prices shot back above the key $1,480 level after a Reuters/Ipsos opinion poll released on Thursday found that Americans were split on whether they wanted Trump’s presidency to end.

Trump, who was impeached by rival Democrats in Congress, will have to face trial in the U.S. Senate. But he is unlikely to be removed from power as the higher legislative decision-making body is controlled by members of his Republican party, who have made it clear that they view his impeachment a sham.

Despite risk-positive developments such a tentative U.S.-China phase one deal and a Christmas rally on Wall Street, gold as a safe haven hasn’t seen a major price rout over the past few weeks, proving investors still relied on the yellow metal as a hedge in case things went wrong.

Spot gold is still up 15% on the year, while gold futures are showing an annual gain of 13%.

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