LONDON: Gold prices rose on Friday as the dollar came under pressure ahead of a speech by the US Federal Reserve chairman, which could yield clues to the direction of US monetary policy.

Spot gold was up one per cent at $1,196.39 an ounce at 1331 GMT, about 3pc higher than last week’s 2018 low below $1,160.00. US gold futures were up 0.4pc at $1,199.40.

Growing US political uncertainty, reinforced by the legal woes of two of US President Donald Trump’s former advisers this week, is keeping the dollar under pressure despite tighter US monetary policy, analysts say.

“The dollar is behind the rebound in gold, but it is still locked between $1,180 and $1,200, waiting for clear direction,” said ActivTrades’ chief analyst Carlo Alberto De Casa.

Spot silver was up 1.7pc at $14.72 an ounce, platinum gained 1.9pc to $789.90 and palladium rose 2.1pc to $934.80.

Published in Dawn, August 25th, 2018