Gold has gained 4 percent in six days and the metal is headed for the biggest advance since the aftermath of the Brexit vote in late June. April Comex gold prices settled the U.S. day session higher at $1.249.7 an ounce, up $3.20 on the day, due to some safe-haven demand amid a shaky U.S. stock market mid-week. "Metals continue to benefit as doubts about Trump's economic agenda begin to grow. The division within the Republican Party over health-care reform has put the market on the defensive, but a reversal could be here tomorrow, if President Trump can convince some 20 Republicans to back the plan," said Peter Hug, global trading director for Kitco Metals. Hug does not see the healthcare bill being relevant to the price of gold; however, he does see it as a matter of credibility- and whether the Republicans can show that they have a unified front. "The equity market has priced in perfection, in regards to the fiscal plan, and this hiccup in the health proposal created enough reason for traders to take profits in the equities. The sell-off in the equity market pushed the dollar lower and created the lift we suggested yesterday in the metals. It may be premature to aggressively add to metals position and waiting one more day, for the health-care vote, appears the prudent course of action," Hug explained. While gold rallied on safe-haven demand, silver prices struggled with May Comex silver , settling the day at $17.578 an ounce, down 1.1 cents on the day.
This article was written by a staff member of TheStreet.