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Gold Firms on Political Tension, Stronger Dollar

Gold prices edged higher on Friday, supported by a weaker American dollar, safe-haven demand amid U.S. political concerns and tensions between the United Kingdom and Russia.

However, further gains were capped by expectations that the U.S. Federal Reserve would raise interest rates at its policy meeting next week.

Spot gold was up 0.2%at $1,317.97 U.S. per ounce early Friday morning. U.S. gold futures for April delivery were little changed at $1,317.80.

The dollar fell versus the yen on Friday, after a report that U.S. President Donald Trump would remove his national security adviser added to concerns about recent White House personnel changes and what that meant for policy.

A weaker greenback makes bullion cheaper for holders of other currencies.

Concerns over the investigation into the Trump Organization also tested investor nerves, already frayed by fears U.S. tariffs could hurt the global economy and trigger a trade war.

U.S. Special Counsel Robert Mueller has subpoenaed the Trump Organization for documents, including some related to Russia, the New York Times reported on Thursday.

Meanwhile, Moscow said it would retaliate against London's move to expel 23 Russian diplomats over a nerve toxin attack on a Russian former double agent in Britain.

Meanwhile, silver rose 0.5% to $16.45 U.S. an ounce. Platinum edged up 0.1% to $955.40 U.S., while palladium climbed 0.1% to $987.00 U.S.