Gold has risen amid allegations that US President Donald Trump had asked Federal Bureau of Investigation Director James Comey to end his agency’s probe of Michael Flynn, the former National Security Advisor. Trump sacked Comey on May 9th, and is yet to issue any denials, which has increased investor concerns about his ability to implement his ambitious economic plans. Considering the challenges posed by healthcare, the probability of tax reform before the end of the year has been severely diminished.
Furthermore, a successful ballistic missile test in North Korea over the weekend has once again stirred tensions in the region. The dollar is struggling to remain above six-month lows as investors assesses the impact of the turmoil in the US. Gold was last seen around $1254.00 an ounce. A convincing break above resistance at $1258.00 could see prices rally to $1265.00, which coincides with last week’s highs.