Gold gets a boost from weak dollar

Gold gained and the dollar slumped on Tuesday, as investors bought havens following reports that President Donald Trump shared classified information with top Russian officials at a meeting last week.

June gold GCM7, +0.63%  rose $8.40, or 0.7%, to $1,238.40 an ounce. The contract settled at $1,230 an ounce Monday for its highest finish since May 3, according to FactSet data.

The ICE U.S. Dollar Index DXY, -0.63% which measures the greenback’s value versus euro EURUSD, +0.8748% yen USDJPY, -0.57%  and four other major currencies, was down 0.7%. That takes the dollar index to levels last seen around November 10, just a few days after Trump won the U.S. presidential election.

President Trump shared sensitive intelligence obtained from a close U.S. ally with Russia’s foreign minister and ambassador in a meeting last week, according to U.S. officials, The Wall Street Journal reported. That exchange potentially jeopardizes critical intelligence-sharing agreements in the fight against Islamic State. The development was first advanced by the Washington Post. Trump, early Tuesday, defended his actions.

“Uncertainty, and geological tensions should support the metal in the short term,” said Lukman Otunuga, research analyst at FXTM, in a note Tuesday.

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source: http://www.marketwatch.com/story/gold-gets-a-boost-from-weaker-dollar-in-wake-of-reported-trump-intelligence-flap-2017-05-16

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