Gold jumps to 4-week high on weak dollar

Gold prices surged during the European session on Wednesday, and hit a 4-week high, to extend gains for the second straight day, as the US dollar fell against a basket of currencies, in addition to strong safe-haven demand after President Trump's recent remarks about the anticipated trade deal with China.

Gold prices rose by 0.6% to $1,484.07 an ounce (highest since Nov.7), after opening at $1,477.21, with a session-low of $1,472.69.

The yellow metal gained 1.05% yesterday, its first daily gain in 4 days and the biggest daily gain since Oct.31, lifted by a sharp drop in US dollar.

The US dollar fell by 0.1% against its rivals on Wednesday, to deepen its losses for the fifth straight day, and hit a 4-week low o 97.63, reflecting its drop against a basket of currencies.

The decline of the US currency supports gold prices and other US dollar-denominated metals, as it makes their cost lower for other currencies holders.

President Donald Trump said on Tuesday said that a trade agreement with China might have to wait until after the presidential election in 2020.

These remarks renewed doubts about the chances for the US and China to reach the phase one of their trade agreement in the short term, especially as the date for the US planned tariffs hike on Chinese goods worth $256 billion is due December 15.