London — Gold prices climbed on Thursday to their highest since August 2016 as a weakening dollar helped it to extend gains of more than 10% since mid-December. The dollar plunged to a three-year low against a basket of major currencies after the US treasury secretary said he welcomed a weaker greenback, making gold cheaper for users of other currencies. The lower dollar could also drive prices higher in the US and increase demand for gold as a hedge against inflation. "Gold is benefiting tremendously from the weaker dollar," said ETF Securities analyst Nitesh Shah. Spot gold was up 0.1% at $1,358.80 an ounce by 10.42am GMT. It had earlier touched $1,366.07, the highest level since August 3 2016. US gold futures were up 0.2% at $1,358.50 an ounce. Gold has broken above its 2017 high of $1,357.54, a key technical level, with further resistance at about $1,370 and the 2016 high of $1,374.91. Momentum indicators signalled that gold should rise further, ScotiaMocatta analysts said. "Exc...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now