Gold prices are up more than one per cent ahead of Theresa May's Brexit speech

 
Courtney Goldsmith
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Gold increased up to 1.7 per cent today, remaining well above the $1,200 per ounce mark as the dollar stayed low this morning.

Growing concerns over Donald Trump's protectionist policies have pushed the currency down going into his inauguration this week, Reuters reported. The dollar dropped 0.9 against the yen to a five-week low in early European trading.

Gold, which is now trading at $1,215.30 per ounce, up 1.6 per cent, traded higher over 14 of the last 16 sessions, said LCG analyst Ipek Ozkardeskaya, and trends point to further increases.

US inflation is expected to be a key driver for the yellow metal's prices, which yesterday increased ahead of Trump taking the presidency.

Theresa May's speech later today, which is set to outline her plans for a so-called hard Brexit, is also expected to be driving safe haven assets up.

Read more: May vows to turn Britain into "a great global trading nation"

"Gold is going to do very well in the first half of the year due to Brexit concerns, Chinese currency pressure and uncertainty surrounding Donald Trump's policies," Reuters reported Richard Xu, fund manager at China's biggest gold exchange-traded fund, HuaAn Gold, said.

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