Gold Firms on Political Concerns

Gold was set to end the week slightly higher as the sudden firing of the Federal Budget of Investigation director stoked investor concerns and boosted demand for bullion, even as the U.S. dollar headed for its strongest week this year.

Spot gold was up 0.4%o $1,228.96 U.S. per ounce, having risen 0.5% in the previous session, its best one-day gain in a month.

U.S. gold futures for June delivery added 0.4% to $1,229.30 U.S. an ounce.

U.S President Donald Trump on Thursday ran into resistance for calling the ousted James Comey a "showboat." The attack was swiftly rebuffed by top U.S. senators and acting FBI Director Andrew McCabe, who pledged that an investigation into possible Trump campaign ties to Russia would proceed just the same.

But keeping a lid on gains in gold are expectations that the U.S. Federal Reserve will increase interest rates in June.

Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the greenback, in which it is priced.

Among other precious metals, silver rose 1% to $16.45 U.S., set for its first weekly rise in the last four.

Platinum added 0.4% to $918.00, while palladium gained 0.4% to $804.65 U.S.

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