Gold prices hit 1-month high as US dollar falls

Gold prices rose to a one-month high on Monday as the US dollar collapsed, after President Donald Trump failed to push through a healthcare reform package on Friday.

Spot gold was last up 1.2 percent at $1,258.63 an ounce, after reaching a one-month high of $1,259.14 earlier in the session. Gold futures for June delivery on Comex rose 0.8 percent to $1,261.7 an ounce.

“The dollar has found itself under renewed selling pressure as concerns mount over Donald Trump’s ability to push through tax cuts and fiscal spending to elevate the US economy,” Lukman Otunuga, research analyst at FXTM, wrote in a note Monday.

“Uncertainty is rapidly rising over Trump’s economic policies and this has caused investors to depart from riskier assets to safe-haven investments such as the yen and gold,” he added.

Gold has climbed since the US Federal Reserve decided to increase interest rates earlier this month.