London — Gold rose to a four-month high on Friday and was on track for a fifth straight weekly gain as the dollar fell against the euro on an agreement for a political coalition in Germany. Spot gold rose 0.7% to $1,331.62 an ounce by 11.02am GMT, having touched its highest since September 15 at $1,333.02. The precious metal is up 0.9% this week and set for its longest run of weekly gains since April. US gold futures were up 0.7% at $1,332.30. The dollar index, which measures the greenback against six major currencies, fell to its lowest since September 11 at 91.308. The euro jumped to a three-year high after party sources said that German Chancellor Angela Merkel’s conservatives and the Social Democrats (SPD) had agreed a blueprint for formal coalition negotiations. "This agreement of a coalition will change the situation of a hung parliament in Germany and that is why the euro is positive, weakening the dollar, which is one of the reasons why gold is firmer this morning," said Qua...
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