Investing.com - Gold prices rallied to a four-week high during European morning hours on Monday, as growing doubts about U.S. President Donald Trump's pro-growth economic agenda prompted investors to dump risky assets and rush to safe havens.
Comex gold futures reached a session peak of $1,259.20 a troy ounce, the highest since February 27. It was last at $1,257.75 by 3:20AM ET (07:20GMT), up $9.20, or around 0.8%.
Meanwhile, spot gold was up $13.00 at $1,258.00.
The dollar slid to a near five-month low against a basket of currencies on Monday after President Donald Trump's failure to push through a healthcare reform bill prompted investors to question the extent to which he can deliver on growth policies that have been priced in since his election.
Investors viewed the Trump administration's failure to push through a healthcare overhaul as a sign he may also face further setbacks delivering on other policy pledges including corporate tax cuts, regulatory reform and infrastructure spending.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.6% at 98.96 in London morning trade, a level not seen since November 11.
The index had risen to a 14-year high near 104.00 early in January when expectations for significant stimulus under the Trump presidency were at their peak.
Meanwhile, U.S. Treasury yields edged lower, with the benchmark 10-year note yield falling to a four-week low of 2.357%.
Also on the Comex, silver futures for May delivery jumped 16.5cents, or about 1%, to $17.91 a troy ounce, the most since March 6.
Meanwhile, platinum added 0.8% to $978.50, while palladium shed 0.7% to $807.67 an ounce.
Elsewhere in metals trading, copper futures dropped 3.5 cents, or 1.3%, to $2.596 a pound.