Gold rose on Friday, notching its second straight week of gains as concern about the ability of US President Donald Trump to push legislation through Congress pressured the dollar, making bullion cheaper for holders of other currencies. The dollar remained near seven-week lows against a basket of currencies ahead of a vote on a healthcare bill, formally called the American Health Care Act.
Gold, seen as a safe haven asset, has benefited from falls in the dollar, US bond yields and stocks this week as Trump's difficulty in passing healthcare reform has undermined faith that he can deliver on promises of tax cuts and investment.
Spot gold was up 0.2 at $1,247.66 an ounce by 2:10 pm EDT (1810 GMT). The metal has risen 1.6 percent this week and on Thursday touched $1,253.12, its highest since February 28. It rose nearly 2 percent a week earlier. US gold futures settled at $1,248.50 an ounce. Trump has set up a showdown with lawmakers by demanding support for the healthcare bill in a vote on Friday afternoon.
"Gold seems to have done a little bit better as the day wore on as it's becoming pretty sure that this bill is not gonna pass ... That's a driving force all the way across," said Bill O'Neill, co-founder of LOGIC Advisors. Failure to pass the bill could push gold through technical resistance at around $1,250, analysts said. "If the market can consolidate above $1,250 in the coming days we could see an attempt at the 200-day moving average of $1,259.50," Tim Brown at MKS PAMP wrote in a note.
Silver was up 1 percent at $17.91 an ounce. Platinum was 0.6 percent higher at $964.50 an ounce. Palladium was up 1.4 percent at $810 an ounce, having hit a two-year high of $815.40 earlier in the session. The metal used in catalytic converters that curb pollution from vehicle exhausts has risen about 5 percent this week thanks to strong economic data and demand from the automobile sector.
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