Investing.com - Gold prices climbed to a fresh two-month peak on Friday, as a series of terrorist attacks in Spain on Thursday continued to support demand for the safe-haven precious metal.
Comex gold futures were up around $8.99, or about 0.7%, to a two-month high of $1,301.53 a troy ounce by 8:30AM ET (1230GMT).
Gold prices strengthened after a van rammed into pedestrians in a crowded tourist area of Barcelona on Thursday evening, killing at least 14 people and injuring 100 others.
Shortly after, a second attack was perpetrated in Cambrils, a coastal town south of Barcelona, where police said they killed five attackers.
So far three men have been arrested as country-wide anti-terror operations remain underway, according to local officials.
The Islamic State claimed responsibility for the incident, though the claim has not been verified.
The precious metal was also supported by a weaker U.S. dollar on Friday, amid concerns U.S. President Donald Trump will not be able to implement his agenda, as he faces mounting opposition even from within his own political party.
Eight chief executives quit two business advisory councils on Wednesday, in protest over Trump’s controversial remarks on weekend violence in Charlottesville, Virginia.
Republican Senator Bob Corker also made headlines this week when he slammed Trump's handling of the protests in Charlottesville, saying that the President "has not yet been able to demonstrate the stability nor some of the competence that he needs to demonstrate in order to be successful,."
The dollar had already weakened after the Federal Reserve’s July policy meeting released on Wednesday showed that policy members remain concerned over low levels of inflation, which could mean the central bank may avoid raising rates again this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.18% at 93.47.
Gold is sensitive to moves higher in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, silver futures climbed 13 cents, or around 0.8%, to $17.19 a troy ounce.