Price of gold lifts after Donald Trump’s impeachment

Bengaluru — Gold prices edged inched up on Thursday after the US House of Representatives voted to impeach President Donald Trump on articles of abuse of power and obstruction of Congress.

Spot gold was up 0.1% at $1,477.15/oz, as of 1.52am GMT. US gold futures were up 0.2% at $1,481.30/oz.

Trump became the third US president to be impeached as the House formally charged him with abuse of power and obstruction of Congress in a historic step that will inflame partisan tensions across a deeply divided US.

The House action sets the stage for a trial in January in the Republican-controlled Senate on whether to convict him and remove him from office.

The dollar eased against a basket of currencies, making gold cheaper for holders of other currencies. Two US central bankers  said on Wednesday that the US economy was in good shape after three interest-rate cuts in 2019, underscoring the consensus at the Federal Reserve for keeping borrowing costs where they are for the time being.

Prior to the impeachment vote, Asian shares edged higher on positive global growth outlook followed by improving economic indicators.

Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.3% to 883.29 tonnes on Wednesday. India, the world’s second-biggest gold consumer, has restricted imports of gold and silver in the powder and unwrought forms, the government said in a notification.

Elsewhere, palladium edged up 0.1% to $1,924.97/oz. The metal prices had hit a record peak of $1,998.43 on Tuesday. Palladium prices are close to breaking above $2,000/oz time, with a gaping supply deficit fuelling a remarkable run that has seen the autocatalyst metal more than quadruple in value since 2016. Silver rose 0.2% to $17.03/oz, while platinum fell 0.2% to $933.34. 

Reuters