London — Gold rose on Wednesday after marking a seven-week low the previous session, as the dollar dipped on talk that a dovish Federal Reserve chair would be appointed in 2018. The greenback eased against a currency basket after a Politico report said Fed governor Jerome Powell was favoured by US treasury secretary Steven Mnuchin over former governor Kevin Warsh. Janet Yellen’s term as chair expires in February. Powell is seen as more dovish than Warsh, who has criticised the Fed’s bond-buying programme in the past. "The market is looking at the dollar at the moment, we’ve seen an unwind of the fear trade linked to North Korea. That trend is likely to continue," said Martin Arnold, commodity strategist at ETF Securities. "The dollar will grind higher in the next couple of months," he added. ETF sees spot gold edging down to $1,260 an ounce by year-end. Having touched its lowest since mid-August on Tuesday, spot gold rose 0.4% to $1,276.87 an ounce by 10.08am GMT on Wednesday. The p...
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