Gold jumped more than 1 percent to an eight-week high on Tuesday as stocks and the dollar fell after US President-elect Donald Trump said the greenback was "too strong" and British Prime Minister Theresa May promised a parliamentary vote on Brexit.
Spot gold rose for the seventh straight session, and was 1.05 percent higher at $1,215.39 an ounce by 3:12 pm EST (2012 GMT) after touching a November 22 high of $1,218.64 an ounce.
US gold futures settled up 1.4 percent at $1,212.9 per ounce. The dollar, in which gold is priced, fell 0.8 percent to the lowest since December 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 US 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.
Holdings of the largest physically backed ETF, the SPDR Gold Trust, rose on Friday for the first time since November 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 was up 2.3 percent at $17.15 an ounce, after hitting a one-month high. Platinum was last down 1.1 percent at $970.25 after touching a two-month high. Palladium added 0.6 percent to $748.55.
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