Gold prices hit a two-week high on Wednesday as Asian stocks slipped and the dollar was pressured after underwhelming US housing data and reports that US President Donald Trump sought an end to an FBI probe into his former security adviser.
Spot gold had climbed 0.5 per cent to $1,242.92 per ounce by 0059 GMT, after earlier touching its strongest since May 3 at $1,244.70. It rose about 0.5 per cent on Tuesday in its biggest one-day percentage gain since April 12. US gold futures were up 0.5 per cent at $1,242.90 an ounce.
Trump has asked then-FBI Director James Comey to end the agency's investigation into ties between former White House national security adviser Michael Flynn and Russia, according to a source who has seen a memo written by Comey.
The Comey memo, first reported by the
The dollar nursed its losses on Wednesday after taking a combination of punches - solid eurozone economic data, a fall in US yields on the heightened turmoil in Washington and downbeat housing data that reduced the expectations of a Federal Reserve rate hike next month.
The dollar's index against a basket of six major currencies was near its lowest levels since November 9 and last stood at 98.081.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2 per cent.
US manufacturing output
US manufacturing production recorded its biggest increase in more than three years in April, bolstering the view that economic growth picked up early in the second quarter despite a surprise decline in homebuilding.
The US economy is forecast to expand at a 4.1-per cent annualised pace in the second quarter following the release of April figures on housing starts and industrial output, the Atlanta Federal Reserve's GDP Now forecast model showed on Tuesday.
North Korea's missile programme is progressing faster than expected, South Korea's defence minister had said on Tuesday, after the UN Security Council condemned the weekend launch of a new long-range missile and demanded Pyongyang halt weapons tests.
Policy uncertainty in South Africa and low commodity prices are hurting investment in the mining sector and will lead to further job cuts, the chief executive of the world's biggest platinum miner, Anglo American Platinum (Amplats) , had said on Tuesday.