Gold and other metals pushed higher on Wednesday, erasing part of their weekly loss, with analysts pinning the rebound in part on geopolitical worries.
February gold rose by $5.80, or 0.5%, to $1,270.70 an ounce, recovering somewhat from Tuesday’s 1% slide to its lowest settlement in about four months. It remains down so far for the week, showing a decline of 0.9%.
Gold has bounced from October lows thanks to the weaker USD and geopolitical risk. There are concerns in the U.S. about the potential for a partial government shutdown, and the Trump administration’s signals that it could declare Jerusalem Israel’s capital threatens to spark unrest across the Mideast. In addition, investors continue to keep an eye out for developments in the Brexit talks after U.K. and European Union officials on Monday failed to reach a deal that would move negotiations on to the second stage.
Some analysts emphasized that gold has clambered back above its 200-day simple moving average after undercutting that closely watched chart level on Tuesday. There has been an “expected recovery” that has taken prices “again back above the 200 daily SMA,” said James Hughes, chief market analyst at AxiTrader, in a note.
March silver rose by a dime, or 0.6%, to $16.17 an ounce, while March copper added 3 cents, or 1%, to $2.98 a pound.