Weak dollar puts gold at 3-week high
london — Gold strengthened on Wednesday, with the price touching its highest in three weeks as the dollar languished near six-week lows and bond yields sank on uncertainty over the economic policies of US President Donald Trump.
Spot gold was up 0.27 per cent at $1,247.90 an ounce by 1256GMT, close to the session high of $1,248.47.
A lack of concrete policy from the Trump administration is increasing gold’s attraction as a safe-haven investment, analysts and traders said.
“It seems that equity investors decided to take some money off the table, perhaps getting slightly wary about the progress in President Trump’s legislative agenda,” said INTL FCStone analyst Edward Meir.
US gold futures firmed slightly to $1,247.90.
Gold was also supported by a further drop in US Treasury yields, with the 10-year benchmark yield dipping below 2.4 per cent for the first time since March 1.
Holdings of SPDR Gold Trust, the world’s largest goldbacked exchange-traded fund, rose 0.5 per cent to 834.40 tonnes on Tuesday after three sessions of outflows.
In other precious metals, spot silver slipped by 0.2 per cent to $17.52 an ounce, having hit a more-than-two-week high of $17.59 in the previous session.
Platinum gained 0.1 per cent to $966.10 and palladium eased by 0.6 per cent to $790.73. Palladium had peaked at $792.90 on Tuesday, its highest in more than a month. —