NEW YORK/LONDON (Reuters) - Gold jumped more than 1 percent to an eight-week high on Tuesday as stocks and the dollar fell after U.S. President-elect Donald Trump said the greenback was “too strong” and British Prime Minister Theresa May promised a parliamentary vote on Brexit.
Spot gold XAU= rose for the seventh straight session, and was 1.05 percent higher at $1,215.39 an ounce by 3:12 p.m. EST (2012 GMT) after touching a Nov. 22 high of $1,218.64 an ounce.
U.S. gold futures GCcv1 settled up 1.4 percent at $1,212.9 per ounce. The dollar .DXY, in which gold is priced, fell 0.8 percent to the lowest since Dec. 8 against major currencies.
“Trump’s stance on trade and protectionism has been well aired and it will always be a key factor. But until we get more clarity on what exactly it means, this should help to underpin gold,” said Societe Generale head of metals research Robin Bhar.
In an article in the Wall Street Journal, Trump said the strength of the U.S. dollar against China’s yuan “is killing us.”
“This year there are lots of uncertain political events, including elections, so if you looking for a bit of a refuge from stormy seas gold will be one of those safe assets that you would park some money in,” Bhar said.
Sterling GBP= logged its biggest daily gain since at least 1998 as May promised a parliamentary vote on Britain's deal to leave the EU and sought to draw a line under discussion of a "hard" or "soft" Brexit. [GBP/]
“With both these comments, investors bought gold and drove the entire complex higher,” said Miguel Perez-Santalla, vice president of Heraeus Metal Management in New York.
“Tomorrow’s (U.S.) Consumer Price Index will give better colour on our current economic market environment.”
Gold is often considered an alternative investment during times of geopolitical and financial uncertainty.
Also boosting gold was uncertainty over Trump’s plans for the U.S. economy after his inauguration on Friday.
Holdings of the largest physically backed ETF, the SPDR Gold Trust (GLD), rose on Friday for the first time since Nov. 9, the day after Trump’s election victory, indicating investor interest.
Credit Suisse said in a note it remained “constructive” on gold prices, forecasting an average of $1,338 an ounce in 2017.
Spot silver XAG= was up 2.3 percent at $17.15 an ounce, after hitting a one-month high. Platinum XPT= was last down 1.1 percent at $970.25 after touching a two-month high.
Palladium XPD= added 0.6 percent to $748.55.
Additional reporting by Nallur Sethuraman in Bengaluru; Editing by Alexandra Hudson and Meredith Mazzilli