Gold on track for biggest gain in 5 weeks as dollar softens
london — Gold rose on Friday and was on track for its best week in five as the dollar softened on political turbulence in the United States, boosting bullion’s safe-haven appeal.
Spot gold was up 0.5 per cent at $1,253.31 per ounce, as of 1151 GMT, putting it up 1.9 per cent for the week. US gold futures slipped 0.1 per cent to $1,251.60 an ounce.
“Political risk is back on again after market participants became overly complacent following the outcome of the French elections,” Commerzbank analyst Carsten Fritsch said. “Risk week fired FBI Director James Comey, triggering a political firestorm which culminated on Wednesday in the Justice Department’s appointment of a special counsel to probe possible ties between Russia and Trump’s 2016 presidential campaign.
The dollar index, which measures the greenback against a basket of six major currencies, was headed for its worst week in nine months.
“Safe-haven buying has provided strong support to gold prices over the past six months,” ANZ said in a note. — Reuters