Gold for immediate delivery climbed as much as 0.6% to $1,245.07 an ounce, the highest since 3 May.
Gold’s getting a lift from the turmoil in the West Wing. Bullion advanced for a fifth straight day as investors cut back on risk, with President Donald Trump’s administration embroiled in controversy after controversy and the dollar sinking to the lowest since November.
Bullion for immediate delivery climbed as much as 0.6% to $1,245.07 an ounce, the highest since 3 May, and was at $1,243.94 at 10.48 am in Singapore, according to Bloomberg generic pricing.
The winning run is the longest such stretch in a month, and takes gains this year to 8.4%.
Gold has rebounded following Trump’s firing of FBI director James Comey a week ago, as well as reports he shared intelligence with Russian officials.
In the latest twist, Trump is said to have asked Comey in February to drop an investigation into a former national security adviser, raising questions he may have obstructed justice. The administration’s problems are seen as taking its focus away from policies to aid growth, hurting the US currency.
“The rise in gold is largely a dollar play, with the dollar weakening because of Trump,” said Barnabas Gan, an economist at Oversea-Chinese Banking Corp., who also flagged overseas tensions.
“There’s still more downside risk to gold in the long run, but in the short-term, given what the North Koreans are doing and what Trump is doing, the dollar is inherently weak.”
The concerns surrounding the White House may slow economic-policy decisions, according to Westpac Banking Corp., which recommends investors short the dollar.
“Regardless of the ultimate conclusion of the political storm over Trump’s actions on Russia and the security services, it will at the very least linger as a distraction that makes it more difficult for the White House to pass pro-growth policies,” said Sean Callow, a senior currency strategist.