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Gold hits four-week high on weaker equities, US dollar

by July 24, 2017 General

An employee shows a gold bullion bar at Degussa shop in Singapore June 16, 2017. — Reuters pic An employee shows a gold bullion bar at Degussa shop in Singapore June 16, 2017. — Reuters pic NEW YORK, July 24 — Gold touched a four-week high early this morning, supported by weaker equities and a dip in the dollar to fresh 13-month lows due to political uncertainty in the United States.

Spot gold was trading up 0.1 per cent at US$1,255.92 (RM5,373.91) per ounce at 0033 GMT. It hit a 4 week high of US$1,257.18 an ounce in early trade, having risen 2.l per cent last week.

US gold futures for August delivery rose 0.1 per cent to US$1,256.00 per ounce.

Asian stocks slipped as demand for riskier assets ebbed after recent strong gains, while the euro’s near-two-year high on the European Central Bank’s seeming lack of concern about its strength left the dollar languishing near a 13-month low.

The dollar struggled near a 13-month low against a basket of major currencies this morning as US political woes dampened hopes for quick passage of President Donald Trump’s stimulus and tax reform agendas.

The White House said on Sunday that Trump was open to signing legislation toughening sanctions on Russia after Senate and House leaders reached agreement on a bill late last week.

US Republican Senate leaders aim to hold a procedural vote as early as Tuesday to take up legislation to repeal or replace Obamacare, but it remained unclear which version of the bill senators would vote on.

The president’s oldest son, Donald Trump Jr., has added a lawyer with congressional experience to his legal team, the lawyer told Reuters on Sunday.

Hedge funds and money managers increased their net long position in COMEX gold for the first time in six weeks in the week to July 18, US Commodity Futures Trading Commission data showed on Friday. — Reuters