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Gold futures rise 1% as metals extend Trump rally

Published 10/11/2016, 08:13
Updated 10/11/2016, 08:19
© Reuters.  Gold futures gain as metals extend Trump rally
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Investing.com - Gold prices rose sharply during Europe's session on Thursday, as the U.S. dollar pulled back from a two-week high touched in wake of Donald Trump’s election victory.

Gold for December delivery on the Comex division of the New York Mercantile Exchange tacked on $14.80 or 1.18%, to $1,288.50 a troy ounce by 3:13AM ET (08:13GMT).

The U.S. dollar was last down more than 0.2% against a basket of major currencies at 98.44, after climbing to 98.91 overnight, the highest since October 28.

Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

A day earlier, gold futures surged by as much as 4.7% to a six-week peak of $1,338.30, before falling back to end at $1,273.50, as financial markets recovered to show surprise gains in the wake of Republican Donald Trump's shock presidential victory.

Also on the Comex, silver futures for December delivery jumped 46.5 cents, or 2.54%, to $18.84 a troy ounce during morning hours in London.

Elsewhere in metals trading, copper futures soared 11.7 cents, or 4.74%, to $2.577 a pound, a level not seen since July 2015.

Prices of the red metal gained 7.9 cents, or 3.34%, on Wednesday after Trump's victory speech included a pledge to spend on rebuilding America's infrastructure.

The metal is regarded as a leading indicator of the global economy. It is used in the construction of buildings, power generation and transmission and the manufacture of consumer electronics.

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