London — Gold rallied more than 1% on Monday after US President Donald Trump’s failure to push through a healthcare reform package on Friday raised questions over his ability to deliver promised tax cuts and spending plans. That knocked the dollar to a four-month low versus a basket of currencies and drove a drop in stock markets, with European indices sliding nearly 1% in early trade and US stocks opening lower. Spot gold was up 1.2% at $1,259.11 an ounce by 1.50pm GMT, having touched a one-month high of $1,261.03. US gold futures for April delivery were up $10.70 at $1,259.20. "This is entirely driven by the weaker US dollar," Commerzbank analyst Carsten Fritsch said. "The euro is at the highest level versus the greenback since immediately after the US election. The Trumpflation trade is being priced out after the failure to repeal Obamacare." Gold had already rallied sharply from its March 15 low after a less hawkish policy statement than expected from the Federal Reserve, which ...
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