Investing.com – Gold prices acquired in European trade on Wednesday, touching the greatest level in 2 days as traders stored track of fresh political developments within the U.S. after President Jesse Trump allegedly requested the FBI to finish a probe into his former security advisor.
Comex gold futures rose around $7.00, or about .6%, to $1,243.61 a troy ounce by 3:00AM ET (07:00GMT). Meanwhile, place gold what food was in $1,243.79. Prices from the gold leaped for an overnight peak of $1,245.00, probably the most since May 3.
Gold notched a fifth-straight winning session on Tuesday because the dollar sank to some six-month low among indications of slowing business activities within the U.S.
Safe-haven demand was boosted after media reports stated President Trump requested then-FBI Director James Comey to finish a probe into Trump’s former national security consultant, Michael Flynn.
The report elevated questions over whether obstruction of justice charges might be laid against Trump, contributing to concerns that he’ll be not able to effectively proceed his economic stimulus program when confronted with mounting controversies.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, weakened for any sixth straight day, falling around .2% to 97.86 working in london morning trade. It slid for an overnight low of 97.76, an amount not seen since November 9.
Meanwhile, a string of less strong than expected U.S. economic reports in recent days saw investors temper expectations for additional rate hikes through the Fed.
Odds for any June rate hike dropped close to 64%, based on Investing.com’s Given Rate Monitor Tool, lower from greater than 80% the other day.
The rare metal is responsive to moves in U.S. rates, which lift the chance price of holding non-yielding assets for example bullion. A gentle road to greater rates is viewed as a lesser threat to gold prices than the usual quick number of increases.
Also around the Comex, silver futures acquired 13.5 cents, or about .8%, to $16.88 a troy ounce.
Elsewhere in metals buying and selling, platinum tacked on .5% to $941.95, while palladium held steady at $792.02 an oz.
Copper futures dipped .2 cents to $2.549 one pound.