Investing.com - Gold prices rose to their highest level in more than seven weeks in North American trade on Tuesday, as investors sought safe-haven assets ahead of potentially market-moving events later this week, including former FBI Director James Comey's testimony to a Senate committee and the U.K.’s general election.
Comex gold futures rose to a session peak of $1,296.40 a troy ounce, a level not seen since April 17. It was last at $1,293.83 by 8:15AM ET (1215GMT), up $11.05, or about 0.9%. Meanwhile, spot gold was at $1,291.18.
Gold prices scored a second-straight session of gains Monday as market players monitored fresh geopolitical tension in the Middle East as well as the fallout from the weekend terror attack in London.
Also on the Comex, silver futures tacked on 4.7 cents, or around 0.3%, to $17.62 a troy ounce. It rose to $17.71 in overnight trade, a level not seen since April 25.
Market players will pay close attention to former FBI director James Comey's testimony before the Senate Intelligence Committee on Thursday, in a hearing that could add to difficulties facing President Donald Trump.
It has been reported that Comey plans to testify to conversations in which Trump pressured him to drop his investigation into former National Security Advisor Mike Flynn, who was fired for failing to disclose conversations with Russian officials.
Meanwhile, in Britain, the latest opinion poll, by Survation for ITV (LON:ITV) television, showed Prime Minister Theresa May's lead over the opposition Labour Party holding at just 1 percentage point ahead of Thursday's election.
Other polls in recent days have found bigger leads for the Conservatives of up to 11 and 12 points.
A failure to win the election with a large majority would weaken May just as formal Brexit talks are due to begin, while the loss of her majority in parliament would pitch British politics into turmoil.
The risk-off mood was further compounded by escalating tensions in the Middle East, where Saudi Arabia and three other Arab nations severed their ties with Qatar, accusing it of supporting terrorism.
Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.
Reduced expectations for aggressive U.S. rate hikes from the Federal Reserve in the second half of this year further boosted the appeal of the yellow metal.
The dollar index, which tracks the greenback against a basket of six major rivals, was down 0.1% at 96.69 in New York morning trade. It fell to an overnight low of 96.49, a level not seen since November 9.
Elsewhere in metals trading, platinum ticked up 0.5% to $962.90, while palladium added 0.3% to $844.30 an ounce.
Copper futures lost 3.3 cents to $2.525 a pound.