MTECHTIPS:-Gold climbs to 2-month high as dollar tumbles on Trump

MTECHTIPS:-Gold climbs to 2-month high as dollar tumbles on Trump uncertainty

MTECHTIPS- Gold prices rose sharply during European morning trade on Monday, hitting the strongest level in around two months as the U.S. dollar tumbled amid uncertainty around the economic policies of new U.S. President Donald Trump. Gold for February delivery on the Comex division of the New York Mercantile Exchange touched a session high of $1,219.40 a troy ounce, a level not seen since November 22. It was last at $1,214.50 by 3:10 AM ET (08:10 GMT), up almost $10.00, or 0.8%. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.5% at 100.25 in early trade, after slumping to a seven-week low of 100.17 earlier. The dollar sold off after President Trump struck a protectionist tone in his inauguration speech on Friday, disappointing investors who hoped to hear further details on his promises of tax cuts and other stimulus. Dollar weakness usually benefits gold, as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. Investors will get back to the business of watching economic data for fresh indications on the health of the economy in the week ahead, with Friday’s advanced reading for U.S. growth in the spotlight