By Georgi Kantchev and Stephanie Yang
Gold prices rose Monday, as the precious metal continued to recover from its selloff into the end of last year.
Gold for February delivery was recently up 0.5% at $1,179.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
According to analysts, the safe-haven asset has regained attention as prices have fallen to multi-month lows. James Steel, chief precious metals analyst at HSBC, said the drop in gold prices has helped spark physical demand in emerging markets including China.
"There does appear to be some modest survival in physicaldemand," Mr. Steel said.
Following a long losing streak, gold exchange-traded funds started seeing inflows last week, according to Commerzbank analysts.
However, gold may continue to face challenges from a strong U.S. dollar, interest-rate increases and uncertainty over the political and economic implications of the new Trump administration. Citi analysts wrote Monday that they expect the gold rally to be short-lived, having been driven by investors covering short positions and looking for bargains.
"I largely expect gold prices to be mainly consolidating this week as we await Donald Trump's presidential inauguration, after which we can get a better picture of the policies that he is going to undertake for his term in office," said Jonathan Chan, investment analyst at Phillip Futures.
Write to Georgi Kantchev at email@example.com
(END) Dow Jones Newswires
January 09, 2017 10:49 ET (15:49 GMT)
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