NEW YORK: Gold futures broke above $1,300 an ounce on Friday, rising to the highest level since November, as global stocks dropped and investors fretted that turmoil in the White House will prevent US President Donald Trump from delivering on his legislative agenda.
Futures for delivery in December advanced as much as 0.9% to $1,303.90 an ounce on the Comex and were trading at $1,301.70 by 8.40am local time. The gain came as a gauge of global stocks extended a decline, and the Bloomberg Dollar Spot Index fell 0.2%.
Gold has added 13% this year as Trump has failed to deliver on campaign promises to ramp up US growth by cutting taxes and boosting infrastructure spending.
This week, the White House has been under fire for Trump’s response to white supremacist marches in Charlottesville. Bullion also rose after the terror attack in Barcelona, and as quiescent US inflation calls into question the Federal Reserve’s ability to go on raising interest rates.
“As gold breaks through $1,300, the room on the upside will be opened,” said Richard Fu, an analyst at Amalgamated Metal Trading in London.