Gold at highest in more than a week on soft dollar

Gold prices rose to their highest in more than a week on Wednesday, supported by a weaker dollar and safe-haven demand as US President Donald Trump failed to convince Republican holdouts to back his tax bill, reports Reuters.

Spot gold was up 0.3 per cent at $3,298.19 an ounce, as of 1243 GMT. US gold futures climbed 0.5 per cent to $3,300.40.

"There's been again a change in direction related to concern about the fiscal situation of the US and the driver has been the Moody's downgrade, and the market was attracted by the level of $3,300 yesterday," UBS analyst Giovanni Staunovo said.

"This fiscal concern is weighing on the dollar, and the weaker dollar is supporting gold prices," Staunovo added.

The dollar slipped to a two-week low against its rivals, making dollar-priced gold cheaper for holders of overseas currency.

Palladium is a component of catalytic converters used in internal combustion engine or hybrid vehicles to reduce harmful emissions.

Silver was up 0.1 per cent at $33.10 an ounce, while platinum rose 0.4 per cent to $1,057.57.