Investing.com - Gold prices were higher on Friday and notched the largest weekly gain since mid-April as political uncertainty surrounding the Trump administration pressured the dollar lower, boosting demand for the precious metal.
Gold for June delivery closed up 0.18% at $1,255.07 on the Comex division of the New York Mercantile Exchange. For the week, the precious metal was up 2.06%.
The dollar came under renewed selling pressure on Friday following reports that a senior White House adviser is a person of interest in the investigation into alleged Russian interference in November’s presidential election.
The Justice Department on Wednesday appointed a former FBI director as special counsel to investigate possible coordination between the Trump campaign and Russia.
The appointment of a special counsel comes after Trump fired James Comey, his FBI director who was leading a probe into Russia’s role in the election and reports that he attempted to interfere with the judicial process, leading to talk of possible impeachment.
Investor sentiment has been hit by fears that the U.S. political system could become engulfed by crisis, preventing lawmakers from pushing through tax or spending reforms.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ended down 0.79% at a six-month trough of 97.00, having given up all the gains it had made following the election in November.
The index ended the week down 2.12%, its worst weekly loss since last July.
A weaker dollar tends to boost prices for gold, which is denominated in the U.S. currency.
Elsewhere in precious metals trading, silver rose 1.24% to $16.87 a troy ounce late Friday, while copper climbed 2.19% to $2.58 a pound
Platinum rose 0.38% to $940.4 a troy ounce, while palladium was down 1.07% to $757.23 a troy ounce.
In the week ahead, investors will be looking at Wednesday’s Federal Reserve meeting minutes for fresh indications on the possible timing of the next U.S. rate hike.
Revised data on U.S. first quarter growth and private sector survey data out of the euro zone will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 22
Eurogroup finance ministers are to hold regularly scheduled talks in Brussels.
Financial markets in Canada are to remain closed for a holiday.
Tuesday, May 23
The euro zone is to publish survey data on private sector business activity.
The Ifo Institute is to report on German business climate.
Bank of England Governor Mark Carney and several other officials are to testify on inflation and the economic outlook before Parliament's Treasury Committee.
Canada is to release data on wholesale sales.
The U.S. is to publish a report on new home sales.
Wednesday, May 24
ECB President Mario Draghi is to speak at an event in Madrid.
The Bank of Canada is to announce its benchmark interest rate and publish a policy statement which outlines economic conditions and the factors affecting the monetary policy decision.
The U.S. is to report on existing home sales.
The Fed is to publish the minutes of its latest policy meeting, giving investors insight into how officials view the economy and their policy options.
Thursday, May 25
The UK is to publish revised data on first quarter growth, as well as preliminary data on business investment.
The U.S. is to publish the weekly report in jobless claims.
Friday, May 26
The U.S. is to round up the week with data on durable goods orders and a revised data on first quarter growth and consumer sentiment.