London — Gold rose on Thursday as the dollar weakened after a 10-day winning streak and investors took the opportunity to buy bullion as a hedge against political uncertainty in the US and Europe. Spot gold rose 0.7% to $1,241.18 an ounce by 3.57pm GMT and is up about 10% from a mid-December low. US gold futures gained 0.7% to $1,242.10. Concern over US President Donald Trump’s policies, as well as elections in the Netherlands, France and Germany this year, have fuelled gold’s rise to a peak of $1,244.67 on February 8. But the prospect of a higher dollar and US Treasury yields after Fed Chair Janet Yellen said that US interest rates may need to be raised in March pushed gold to $1,216.41 on Wednesday, its lowest since February 3. A stronger dollar makes gold more expensive for holders of other currencies, while higher yields increase the opportunity cost of holding non-yielding bullion. Higher interest rates would lift yields further. "It’s a tug of war between a higher probability ...
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