Gold goes up and waits for Trump

The first week of the new year was a period of growth for gold. Investors are wondering what Donald Trump's presidency will bring.

Ole Hansen, Head of Commodity Strategies at Saxo Bank, explains: "At the beginning of the year, we are seeing buying pick up again and there are several factors that could make investors look to gold again."

As noted, physical demand from China and India remains strong. “In China, buying is driven by fear of the devaluation of the yuan and the Chinese New Year. In India, demonetization has resulted in gold becoming a safe asset, ”the analyst said.

In his opinion, there are signs that some investors are turning to gold in anticipation of the start of the Trump presidency. The inauguration will take place on January 20, raising fears of protectionist policies and accelerating inflation stemming from the announced actions of the new administration.

Gold market support is hovering around $ 1,162 an ounce, while a weaker dollar and lower bond yields could mean the gold bullion price could experience a key barrier of resistance at around $ 1,200 an ounce.