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Gold breaks above $1,300, on way to best year since 2010

The dollar's drop to three-month lows versus a basket of currencies on Friday lifted gold to its highest since mid October at $1,303.90 an ounce

Gold, gold imports
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Jan Harvey | Reuters London
Gold hit its highest in two and half months on Friday and remained on track for its biggest annual rise since 2010 as a wilting dollar, political tensions and receding concerns over the impact of US interest rate hikes fed into its rally.

The dollar, in which gold is priced, is sliding towards its worst year since 2003, damaged by tensions over North Korea, the Russian scandal surrounding US President Donald Trump's election campaign, and persistently low US inflation.

The dollar's drop to three-month lows versus a basket of currencies on Friday lifted gold to its highest since mid October at $1,303.90