Gold held near 3-month highs on Thursday as political risks from elections in Europe and worries over US President Donald Trump's policies buoyed safe haven demand for the bullion. Spot gold dipped 0.1 percent to $1,240 per ounce at 0708 GMT. On Wednesday, the metal touched its highest since November 11 at $1,244.67. US gold futures rose 0.2 percent to $1,241.30 an ounce.
"Gold prices will be a little bit rangebound with some upside bias for the next few weeks or so," said OCBC analyst Barnabas Gan." "The risk factors have not really changed so far - we're talking about Donald Trump, we're talking about the political situation in Europe and because of all these factors, we do expect market watchers to stay cautious into the months ahead to gauge how the global economy is going to perform."
Spot gold may edge up to $1,249 per ounce, as it has cleared a resistance at $1,237, according to Reuters technical analyst Wang Tao. Investors are concerned about the strong showing in the French presidential race of far-right candidate Marine Le Pen, who has promised to take France out of the euro zone and to hold a referendum on European Union membership.
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