New York, US (BBN) – Gold and copper prices gain in Asia on Thursday on political risk and supply disruption respectively with sentiment cautious.
Gold for April delivery on the Comex division of the New York Mercantile Exchange rose 0.27 per cent to $1,242.85 a troy ounce, reports
Copper futures on the Comex rose 0.30 per cent to $2.637 a pound as workers at the Escondida copper mine in Chile, the largest in the world, started a strike on Thursday.
The workers union has warned that the strike could be lengthy, potentially affecting global supplies.
Chile is the world’s biggest producer of the red metal, providing almost a third of the world’s supply.
Overnight, gold prices rose for the fifth day in a row on Wednesday, extending a rally to a fresh three-month high amid ongoing worries over political risks in Europe and economic uncertainty in the US.
Investors remained focused on French politics, with recent opinion polls showing centrist Emmanuel Macron slightly ahead of conservative Francois Fillon in the first round, but behind far-right National Front leader Marine Le Pen. She has vowed to pull France out of the euro zone and hold a vote on its membership in the European Union.
The first round of the election is scheduled for April 23, followed by the final run-off vote on May 7.
Adding to the mood of uncertainty, elections will also be held in the Netherlands in March, Germany in September and possibly Italy.
Traders also eyed political risk elements in the US, with President Donald Trump’s administration on the back foot over its immigration and other policies.
Headlines from Washington will continue to dictate market sentiment as traders focus on Trump for further details on his promises of tax reform, infrastructure spending and deregulation as well as trade policies.