Published: 2017.02.24. Gold prices climb to 3-month highs on weaker dollar

Gold prices climb to 3-month highs on weaker dollar - Preview

Gold prices climbed to three-month highs on Friday, as the minutes of the Federal Reserve’s most recent policy meeting continued to weigh on the U.S. dollar and as policital uncertainty around the world boosted demand for safe-haven assets.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were up 0.25% at a three-month high of $1,254.55.

The April contract ended Thursday’s session 1.47% higher at $1,251.40 an ounce.

Futures were likely to find support at $1,236.1, Thursday’s low and resistance at $1,318.60.

Late Wednesday, the minutes of the Fed’s January policy meeting showed that policymakers thought it may be appropriate to raise interest rates again "fairly soon."

However, the minutes also revealed the central bank’s uncertainty over the lack of clarity of the Trump administration's economic program, dampening demand for the greenback.

The dollar was also weighed by a report by the U.S. Department of Labor on Thursday showing that initial jobless claims increased by 6,000 to 244,000 last week. Analysts had expected jobless claims to rise by 2,000 to 241,000.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 100.94, just off Thursday’s three-day low of 100.86.

A weaker U.S. dollar usually supports gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

The precious metal was also supported by ongoing political uncertainty in Europe and the U.S.

Markets were jittery after French centrist Francois Bayrou said on Wednesday that he was offering an alliance with independent candidate Emmanuel Macron in May's presidential election.

The move could hinder far-right candidate Marine Le Pen's chances of winning.

Investors were looking ahead to an address by U.S. President Donald Trump to Congress next week for further clarity on his economic policy.