Investing.com - Gold, silver and copper jumped on Monday in Asia as risk sentiment was heightened by comment from President Donald Trump at the weekend on the scope for drastic changes to the global trade order.
Fears are growing that Trump's "America First" policy could lead to wide trade war with key Asian economies and that along with plan to renegotiate the North American Free Trade Agreement and abandon the Trans Pacific Partnership--global economic freedom may wane.
Gold for February delivery jumped 1.05% to $1,217.50 a troy ounce, while silver rose 1.09% to $17.218 a troy ounce. Copper futures jumped 1.34% to $2.651 a pound. Though copper is often referred to as a leading indicator for economic fortunes, the gains on Monday were linked to asset preferences for industrial and precious metals as stores of value.
Later on Monday, ECB President Mario Draghi is to speak at an event in Italy.
In the week ahead, Trump's policy plans in his first days in office are likely to dominate headlines along with fourth quarter growth from the U.S. on Friday and from the U.K. a day earlier. Tuesday’s data on euro area private sector activity will also be closely watched.
Last week, gold ended higher on Friday, buoyed by the weaker dollar as the inauguration of Donald Trump as U.S. president fueled uncertainty about the direction of fiscal and economic policy.
On Friday, Trump said his administration would put "America first" and also promised new roads, bridges and highways.
But market sentiment was hit by the negative tone of the speech, which underlined uncertainty over how Trump will govern.