Gold was set to close out 2016 up more than 9 percent for its first annual gain in four years, edging higher in the final trading session of the year on Friday on the back of a weaker dollar. Spot gold was up 0.2 percent at $1,160.42 an ounce by 0639 GMT, having earlier hit a more than two-week high of $1,163.14 an ounce. Gold is up about 2.5 percent for the week and poised to register its best weekly gain since early June.
"The dollar is retreating and that gave some support to gold, amid some light buying in a thin market," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong, adding that the focus will now be on the impact of US President-elect Donald Trump's policies. Gold has gained more than 9 percent so far this year despite a steep fall in November, following three successive years of losses.
"Gold made robust gains as demand surged during the periods of economic and political uncertainty until the third quarter," said Mihir Kapadia, CEO of London-based Sun Global Investments Ltd. However, the safe haven asset is down nearly one percent in December, and about 12 percent this quarter. US gold futures rose 0.3 percent to $1,161.30 per ounce.
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