Gold prices surged on Monday to its highest level since November on safe-haven buying boosted by political uncertainty after the U.S. President-elect Donald Trump’s comments on NATO and the “One China” policy and worries about Brexit.
Spot gold was up 0.5 percent at $1,203.31 an ounce at 1302 GMT from an earlier $1,207.86, its highest since November 23.
February gold delivery was up $6.80 or 0.6 percent to $1,203.00 an ounce after nearly reaching the $1,210 mark earlier.
March Silver was up 9 cents or 0.5 percent to $16.86 an ounce.
Last week Trump said the “One China” policy on Taiwan was up for negotiation. China retaliated by saying it would “take off the gloves” and act strongly if U.S. President-elect Trump continues to “provoke” once he assumes office.
He predicted more departure from the EU and renewed his criticism of NATO which stirred worries among investors.
Reports indicate that the U.K Prime Minister Theresa May will tomorrow signal that the U.K is to quit the European single market when it leaves the EU. This indication has worried the markets, with traders concerned about the destabilizing consequences for the UK, EU and, ultimately, the world’s economies.