Investing.com - Gold prices rallied to a seven-week high on Thursday, as the U.S. dollar sank after President-elect Donald Trump's highly-anticipated press conference failed to offer details on his plans to boost fiscal spending and cut taxes.
Gold for February delivery on the Comex division of the New York Mercantile Exchange touched a session peak of $1,202.35 a troy ounce, a level not seen since November 23.
It was last at $1,200.65 by 3:20AM ET (08:20GMT), up almost $4.00, or 0.3%, after ending Wednesday's session up $11.10, or around 1%.
In his first press briefing as U.S. president-elect on Wednesday, Trump failed to give details on some of his economic policies, particularly deregulation, lower corporate taxes and fiscal stimulus, disappointing the dollar bulls.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell to a one-month low of 101.01 in early trade.
It was last down 0.6% at 101.08, pulling further away from last week's 14-year high of 103.82.
Trump has been credited with being a major catalyst behind the impressive rally since election day in the dollar and stocks, although he has yet to outline his economic policies in detail. He will officially take office on January 20.
The precious metal has been well-supported in recent sessions after minutes from the Federal Reserve’s December meeting unsettled investors’ expectations about the pace of future interest rate hikes.
A delay in raising interest rates would be seen as positive for gold, a non-interest-bearing asset, and negative for the dollar.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
The Fed had indicated in December that at least three rate increases were in the offing for 2017, according to a forecast of interest rates from members of the central bank, known as the dot-plot.
However, traders remained unconvinced. Instead, markets are pricing in just two rate hikes during the course of this year, according to Investing.com’s Fed Rate Monitor Tool.
Global financial markets will turn their attention to a flurry of Fed speakers on Thursday, most notably Chair Janet Yellen, as traders look for more clues on the likelihood of higher interest rates later this year.
Also on the Comex, silver futures for March delivery was up 11.0 cents, or 0.6%, at $16.93 a troy ounce during morning hours in London.
Meanwhile, platinum tacked on 1.4% to a nine-week high of $990.50, while palladium advanced 0.9% to $760.80 an ounce.
Elsewhere in metals trading, copper futures added 1.9 cents, or 0.8%, to a one-month peak of $2.630 a pound.