LONDON: Gold prices held firm near one-month highs on Tuesday, supported by political and economic uncertainty in the United States and expectations of a lower dollar.

Spot gold was up 0.2 per cent at $1,256.6 an ounce at 1345 GMT, having touched its highest in a month at $1,261.03 on Monday. US gold futures rose 0.1pc to $1,256.6.

Traders report more investor buying interest after US President Donald Trump failed to push through healthcare reform last week, fuelling concern about his ability to implement his economic policies.

However, some analysts expect to the Fed to keep rates on hold for some time, leaving the dollar to drift lower. “Dollar weakness is something that could propel prices higher, especially in light of the latest CFTC report that shows dollar longs building for a third week in a row despite ongoing weakness,” INTL FCStone analyst Edward Meir said in a note.

Investor demand for gold can be seen in the world’s largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, which reported an inflow of 2.7 tonnes on Monday.

Traders see technical resistance around $1,260, near the 200-day moving average, while support is expected to kick in at a Fibonacci retracement level of about $1,245. In other metals, spot silver gained 0.3pc to $18.12 an ounce and platinum slid 0.1pc to $962.7. Palladium ceded by 0.6pc to $788.5 an ounce.

Published in Dawn, March 29th, 2017