London — Gold prices held firm near one-month highs on Tuesday, supported by political and economic uncertainty in the United States and expectations of a lower dollar. Spot gold was up 0.2% at $1,256.6 an ounce at 1.45pm GMT, having touched its highest in a month at $1,261.03 on Monday. US gold futures rose 0.1% to $1,256.6. Traders report more investor buying interest after US President Donald Trump failed to push through healthcare reform last week, fuelling concern about his ability to implement his economic policies. That worry also sent the dollar to a four-and-a-half-month low against a basket of currencies on Monday. This makes dollar-denominated gold cheaper for holders of other currencies, potentially boosting demand. "The dollar has come under a lot of pressure and lifted gold," said Julius Baer analyst Carsten Menke. "Changing perceptions of the outlook for US interest rates will create volatility in gold." The US Federal Reserve raised interest rates this month, boostin...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.