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Gold at highest since May 1 on political uncertainty, dollar weakens

Gold is used as an alternative investment during times of political and financial uncertainty

Reuters  |  London 

Gold at highest since May 1 on political uncertainty, dollar weakens

hit its highest in nearly four weeks on Friday in response to a weaker and political uncertainty that led investors to shun riskier assets in favour of bullion.

"We have had the political noise coming from Trump and the US administration and there is a certain element of uncertainty in the in general, which is supporting Equities are also down," analyst at Julius Baer in said.

Leaders of the world's rich nations face difficult talks with Donald Trump at a in Sicily on Friday after the U.S. president criticised allies for not spending more on defence and accused Germany of "very bad" trade policies.

is used as an alternative investment during times of political and financial uncertainty.

Spot had gained 0.9 percent to $1,266.01 per ounce by 1000 GMT, the highest since May 1. U.S. futures gained 0.7 percent to $1,265.60 an ounce.

Menke expects to remain rangebound with a price target of $1,200 in three months.

"The headwinds are coming from U.S. monetary policy. We do expect a rate hike in June and we see the strengthening again. On the upside, there's a lot of uncertainty, which keeps people from selling and maybe causing a little bit of buying."

The big data points for the day will be the Q1 figures from the as well as the durable goods figures, Jordan Eliseo, chief economist at ABC Bullion, said.

"We did issue a buy recommendation on some two days ago and will stick with that for the time being, especially considering how well the complex held up in Thursday's session against a variety of headwinds," INTL FCStone analyst Edward Meir said in a note.

The index, which measures the currency against a basket of six major rivals, was down slightly.

Among other precious metals, spot was up 0.8 percent at $17.26, platinum was 1.1 percent higher at $957, while rose 0.9 percent to $777.80.

has risen about 2.7 percent this week and is on track to mark its biggest weekly rise since mid-April. Platinum is up 1.2 percent for the week and is set to notch its third straight weekly rise.

has gained 1.8 per cent this week and is on track for its first weekly gain this month.

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