Gold, silver move higher after Trump speech

Gold and silver pushed higher Monday following Donald Trump's inauguration as US president.

The yellow metal ended US$12.30 higher at US$1,212.85/oz in London, with silver hitting a 10-week high of US$17.14/oz, up 25 cents.

"Trump again used strong words that appear detached from reality in his speech, showing once more how unpredictable he is," Commerzbank said.

"The uncertainty surrounding his future policy is clearly generating increased demand for gold as a safe haven, as can be seen from the recent moderate inflows into ETFs [exchange traded funds] again," the German bank said.

Despite the uncertainty over Trump's presidency boosting demand for gold, a clear buy signal remains unconfirmed, Kitco's Peter Hug added, with key pledges to renegotiate trade deals and impose tariffs and tax reforms likely to take time, he added.

"In the short term, the dollar and equity markets will be a truer indicator of where capital is placing its bets. A weaker dollar/equity markets will continue to push capital into gold."

The greenback traded in the 93.0-93.5 euro cent range Monday, down about half a cent and around three cents lower than its 96.3 euro cents high earlier in January.