Gold rose to a seven-week high on Wednesday, as the dollar dropped and Treasury yields fell after U.S. President-elect Donald Trump spoke in his first formal news conference just days before taking office. Spot gold was up 0.4 percent at $1,192.61 an ounce, after a choppy session that traded from $1,176.94 to $1,198.40. At the lows of the session, gold received a much-needed 'Trump bump' when the president-elect triggered an equity and dollar selloff. U.S. stocks lost ground in choppy trading, led by drug stocks after Trump said pharmaceutical companies were "getting away with murder" by charging high drug prices. Trump's timely intercession allowed gold to rally to new highs of the move at $1,198, which is expected to rebound further in the first quarter as market concerns over uncertainties within the year. Elections over the course of the year in France, the Netherlands and Germany are likely to create political tensions in the European Union and support gold. The uncertainty surrounding Brexit could lead to independence referendum in Scotland, adding to the already intensified risks in the euro zone and providing a floor to gold.
Silver was up 0.5 percent at $16.70, but still lower than Thursday’s peak at $16.90. Technically, the metal fell sharply yesterday during one point, but turned positive later on as the U.S. dollar and U.S. stocks pulled back sharply and U.S. Treasury yields rose after President-elect Donald Trump disappointed dollar bulls. Silver prices steadied above the 50-day moving average and are expected to rise further as yesterday’s lower shadow line consolidated the support below.

 
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