Gold prices hit their highest in 7 weeks on Tuesday, boosted by safe-haven buying ahead of British Prime Minister Theresa May speech to discuss plans for a “hard Brexit”.
Gold prices are in a hike since yesterday.
Spot gold was up 0.8 percent to $1,212.40 an ounce by 0605 GMT, its highest since November 23.
U.S. gold futures increased 1.3 percent at $1,211.80 an ounce.
World stock markets were mostly lower Tuesday upon renewed worries about Brexit.
The New York Federal Reserve said the general business conditions index in its Empire State manufacturing survey fell to reading of 6.5 in January, following December’s reading of 9. Economists were expecting to see a reading of 8.1.
Despite the weaker-than expected report, the manufacturing sector in the New York region remains in modestly expansionary territory. Looking at the components of the report, the new orders index fell to a reading of 3.1; at the same time the shipment index was relatively unchanged at 7.3.
There was some nice growth in the labor market as the number of employees index rose to -1.7, a 10-point surge from December’s reading of -12.2.
However growth in the manufacturing sector appears to be the result of growing inventories as the survey’s inventory index climbed to 2.5, a 16 point jump from December and the first positive reading since mid-2015.
Gold prices remained positive above the $1,200 mark even after the report.