LONDON (Reuters) – Gold rallied to its highest level in more than a month on Tuesday as the dollar dipped ahead of a news conference on Wednesday by U.S. President-elect Donald Trump. The market is looking for more clues on Trump’s spending plans in the first speech since his shock win in November, pushing the dollar lower.
The pound and stocks also slid on fears of a “hard” Brexit after British Prime Minister Theresa May said at the weekend she was not interested in Britain keeping “bits” of its EU membership. [MKTS/GLOB]
Gold, often seen as an alternative investment during times of political and financial uncertainty, benefited from the risk-averse sentiment in the market.
Spot gold hit its highest since Dec. 5 at $1,187.61 an ounce and was up 0.2 percent at $1,184.46 an ounce at 1250 GMT. U.S. gold futures were flat at $1,183.70 per ounce.
ABN AMRO commodity strategist Georgette Boele said the combination of a soft dollar, lower U.S. yields and risk aversion created a supportive environment for gold.
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