LONDON: Gold prices held near four-month highs on Wednesday even as a stronger dollar made bullion more expensive for holders of other currencies.

The price of gold has risen by 8 per cent since mid-December, helped by a weakening of the dollar to a three-year low against a basket of major currencies.

Spot gold was down 0.2pc at $1,335.51 an ounce at 1302GMT, close to Monday’s peak of $1,344.44, its highest since Sept 8.

US gold futures were down 0.1pc at $1,335.70.

Butler said gold is likely to remain within a range of $1,300-$1,340 in the short term. But prices could move higher if Republicans and Democrats in the United States fail to pass a spending bill by Friday to avoid a possible government shutdown, he said.

In the longer term, gold will be supported by risk that global share prices could fall from record highs and strong growth around the world could stoke inflation.

In other precious metals, silver was flat at $17.20 an ounce while platinum rose 0.5 per cent to $1,003.60 after touching its highest since Sept 8 at $1,006.60.

Palladium was up 0.9pc at $1,103.97, close to a $1,138 record high hit on Monday.

Published in Dawn, January 18th, 2018