The price of gold price has risen to a fresh four-month high on a weak US dollar

London (Jan 24)  The dollar has extended losses today following comments made by US Treasury secretary Steven Mnuchin at Davos that a weaker dollar is "good" for US trade.

Gold rose more than one per cent to $1,355.20 a troy ounce this morning, its highest level since September, as the weak dollar made gold more attractive for overseas buyers.

In September, gold jumped due to escalating tensions between the US and North Korea, but the price of the yellow metal dropped off again towards the end of 2017.

According to analysts at SP Angel, this is the biggest annual surge in the gold price in seven years.

Fawad Razaqzada, technical analyst at Forex, said: "Mnuchin also added that expected growth in the economy would support the currency in the long term. If he is correct, then the dollar could make a comeback at some point down the line... but perhaps its best chance for a comeback may be after 8th February when the US government is expected to run out of cash again."

Razaqzada added that gold could potentially break last year's high, but it depends "almost entirely" on the US dollar.

"We anticipate that gold will probably break above the 2017 high of $1,357 in the coming days."

CityAM