Trump keeps boosting gold

Gold’s getting a boost from the turmoil in Donald Trump’s West Wing. The haven rose for a fifth day as the president’s latest controversy prompted references to the 1970s Watergate scandal that helped to sink predecessor Richard Nixon, hurting the dollar as investors cut back on risk.

Bullion for immediate delivery climbed as much as 0.6% to $1 245.07 an ounce, the highest since May 3, and was at $1 243.82 at 8am in London yesterday as the Dollar Spot Index sank to the lowest since November. The precious metal’s winning run is the longest such stretch in a month, and takes gains this year to 8.4%.

Gold has risen after Trump’s firing of FBI director James Comey a week ago, as well as reports he shared intelligence with Russia. In the latest twist, Trump is said to have asked Comey in February to drop an investigation into a former national security advisor, raising questions that he may have obstructed justice. The problems are seen as drawing the administration’s focus away from policies to aid growth.

“The rise in gold is largely a dollar play, with the dollar weakening because of Trump,” said Barnabas Gan, economist at Oversea-Chinese Banking Corporation, who flagged overseas tensions. “There’s still more downside risk to gold in the long run, but in the short-term, given what the North Koreans are doing and what Trump is doing, the dollar is inherently weak.” – Bloomberg