Gold prices rose sharply on Tuesday, with traders building up long position in the yellow metal after the initial euphoria over the re-negotiated NAFTA deal waned and U.S.-China trade tensions rose after U.S. President Donald Trump said it was “too early” to negotiate with China.
Worries about Brexit and Italy’s huge deficit budget too prompted traders to seek the safe haven of the yellow metal.
Gold futures for December ended up $15.30, or 1.3%, at $1,207.00 an ounce, the highest settlement in nearly two weeks.
On Monday, gold futures ended down $4.50, or 0.4%, at $1,191.70 an ounce.
Silver futures for December ended up $0.186, at $14.693 an ounce.
Copper futures for December settled at $2.8065 per pound, gaining $0.0190 for the session.
Concerns over the Italian budget prompted traders to pick up gold. Italian Prime Minister Giuseppe Conte reaffirmed his country’s commitment to the Euro after an Italian lawmaker said that the country would resolve its problems by returning to its own currency.
“I’m totally convinced that Italy would resolve most of its problems with its own currency,” Claudio Borghi, the economic head of the ruling League party, told RAI radio.
“Having control of one’s own means in monetary policy is a necessary condition – although not sufficient – to carry out the ambitious and enormous project of renewal.”
According to reports, Italy defied pressure from Brussels and its euro zone partners on Tuesday to water down ambitious budget plans. The government threatened to sue EU officials for causing a sell-off on Rome’s financial