Gold price rises to 8-week high as traders focus on Trump and Brexit

London (Jan 16)  Gold prices on Monday touched their highest level in about eight weeks, as analysts said the safety play was helped by fresh worries about both President-elect Donald Trump and Brexit.

Gold for February delivery GCG7, +0.59%  was up $6.80, or 0.6%, to $1,203.00 an ounce after earlier nearing the $1,210 mark. March silver SIH7, +0.45%  gained 9 cents, or 0.5% to $16.86 an ounce.

Gold briefly touched “an eight-week high of just shy of $1,210 per troy ounce as the new week of trading gets underway,” said Commerzbank analysts in a note. “This is due among other things to strong statements made by U.S. President-elect Donald Trump just a few days before his inauguration, and to new developments with regard to Brexit.”

Trump’s comments in recent interviews touched on China, Russia, the European Union and more. He is slated to become the 45th U.S. president on Friday.

The president-elect suggested he would be open to lifting sanctions on Russia and wasn’t committed to a longstanding agreement with China over Taiwan. He predicted more departures from the EU and reiterated his past criticism of NATO.

Meanwhile, investors also prepared for a speech by U.K. Prime Minister Theresa May slated for Tuesday, in which she is expected to unveil her country’s plans for negotiating an exit from the European Union. The pound GBPUSD, -0.9768%  on Monday slumped to its lowest level since its October flash crash, hit by concerns that the U.K. is headed for a so-called hard Brexit.

Last week, gold gained 1.9% — boosted by a dollar-and-stock retreat as postelection enthusiasm stalled. Speculative financial investors have built up net long positions in the metal for the first time in nine weeks, noted the Commerzbank analysts, who cited CFTC data for the week ended Jan. 10.

See: Best sign Trump rally is fading? Stocks are getting crushed by gold in 2017

Regular trading for U.S. financial markets is closed on Monday in observance of the Martin Luther King Jr. holiday.

Source: MarketWatch