Gold rises to 3-week high as doubts grow over Trump's policies

Gold prices traded at a three-week high during North American hours on Wednesday, as investors grew concerned that the Trump administration will fail to deliver on its pro-growth promises. Comex gold futures touched a session high of $1,249.05 a troy ounce, the highest since February 28. It was last at $1,247.95 by 8:55AM ET (12:55GMT), up around $1.50, or about 0.1%. It settled higher for the fourth session in a row on Tuesday, as risk-averse investors sought safer investments amid a weak dollar and tumbling U.S. equities. Meanwhile, spot gold was up $2.95 at $1,247.60 per ounce. Headlines from Washington will continue to be in focus, as House Republicans are expected to vote on repealing and replacing the Affordable Care Act on Thursday, with the votes needed for passage in doubt. The Freedom Caucus, a key group of House Republicans, threatened to issue a formal statement of opposition to the Obamacare replacement bill, which would delay the vote, unless the language in the bill changes dramatically. Investors see the Trump administration's struggles to push through the healthcare overhaul as a sign he may also face setbacks delivering on the promises for tax cuts, regulatory reform and infrastructure spending. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 99.62 in New York morning trade, after falling to a seven-week low of 99.45 overnight. Meanwhile, U.S. Treasury yields traded lower, with the benchmark 10-Year note yield extending its decline to a three-week low of 2.396%. The greenback, along with Treasury yields, have been on the retreat since the Fed raised interest rates on Wednesday last week, but stuck to its outlook for two more hikes this year, instead of three expected by the market. Also on the Comex, silver futures for May delivery shed 3.6 cents, or about 0.2%, to $17.54 a troy ounce. Meanwhile, platinum slumped 0.2% to $970.05, while palladium added 0.6% to $792.17 an ounce. Elsewhere in metals trading, copper futures dropped 1.7 cents, or 0.6%, to $2.602 a pound.