Gold jumped more than 1 per cent to its highest in nearly eight weeks on Tuesday after US President-elect Donald Trump said the dollar was “too strong”, sending the greenback lower.

Spot gold rose 0.7pc to $1,217.11 per ounce by 1335 GMT, after touching a Nov. 22 high of $1,218.64 ounces.

US gold futures were up 1.3pc at $1,210.70 per ounce. The dollar, in which gold is priced, fell half apc to six-week lows against major currencies.

“Trump’s stance on trade and protectionism has been well aired and it will always be a key factor. But until we get more clarity on what exactly it means, this should help to underpin gold,” said Societe Generale Head of Metals Research Robin Bhar.

Gold, which had soared in anticipation of May’s speech, retreated slightly on profit taking, analysts said. Investor interest in gold was indicated as holdings of the largest physically-backed ETF, New York’s SPDR Trust, on Friday rose for the first time since Nov. 9, the day after Trump’s election victory.

Spot silver was up 1.7pc at $17 an ounce, after scaling a one-month high. Platinum hovered near $986 per ounce after touching a two-month high. Palladium added 1.3pc at $754.

Published in Dawn January 18th, 2017