Gold prices rise

BENGALURU. — Gold rose more than 1 percent to touch a one-month high on Monday as the dollar slid after President Donald Trump’s failure to pass healthcare reform raised doubts over his ability to push through his economic agenda.

Spot gold rose 1 percent to $1 256,20/oz by 4.01am GMT, after hitting $1 257,97, its highest since February 28. US gold futures were up 0,6 percent at $1,256.30. Trump suffered a stunning setback on Friday as his own Republican party pulled legislation to overhaul the US healthcare system, a major election campaign promise of the president and his allies. The blow so early in Trump’s term unnerved financial markets, heightening the concern about the chances of economy-boosting steps being enacted, such as tax reforms and big spending packages.

“Looks like some people are not happy with Trump’s failure over his promises and we see that currently there is a very bearish mood about the US dollar,” said Jiang Shu, chief analyst at Shandong Gold Group.

The dollar slid to a near two-month low against a basket of currencies yesterday, dropping to its worst since February 2.

“With Trump’s 100 days of action rapidly becoming 100 days of inaction, and ahead of French elections, gold should remain bid on any meaningful dips going forward,” said Jeffrey Halley, senior market analyst at Oanda. However, gold should struggle in the short term as major resistance in the shape of the 200-day moving average at $1 260,50/oz loomed large and the market was looking overbought, Halley added.