If you think the new year is a time of optimism and hope for the future, then you haven’t been watching gold.
Bullion prices have risen every day except one in 2017, evidence that investors are pricing in a rocky year ahead. The U.K. is getting ready to sever ties with Europe, with Prime Minister Theresa May preparing for a major speech on Tuesday. Donald Trump is just three days away from being sworn in as the next U.S. president.
“As the inauguration of Trump draws close, I think people are realizing that potentially this could be a very stormy Presidency and gold may well benefit from that,” said David Govett, an analyst at Marex Spectron Group Ltd. in London. “There is new money at the beginning of each year looking for a home and a lot of this seems to find its way into gold.”
Gold for immediate delivery rose 1.1 percent to $1,215.97 an ounce as of 10:04 a.m. in London, according to Bloomberg generic pricing. Prices are the highest in almost a month.
Gold has rallied 5.8 percent this year, extending a 8.1 percent gain in 2016.
May is expected to set out a plan for Brexit later today and say that U.K. is likely to pull out of the European Union’s single market for goods and services and seek a completely new trading relationship.
Bullion’s advance has been buttressed by a retreat in the dollar’s rally, as well as signs of increased demand. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 peers, fell 0.9 percent on Tuesday, and has lost about 1.4 percent since the end of 2016. Holdings in exchange-traded funds backed rose 2.5 metric tons on Friday, the biggest jump since Nov. 9.
The start of the year is usually a positive one for gold. In the past decade, the metal has risen every January in all but three years.
In other market news:
Holdings in exchange-traded funds backed by gold increased 2.5 tons to 1,771.7 tons, the biggest increase since November. Spot silver climbed 1.3 percent to $17.02 an ounce. Palladium and platinum both rose 0.8 percent.
© 2017 Bloomberg L.P