Gold rises sharply amid political turmoil in Washington

Gold futures on the COMEX division of the New York Mercantile Exchange rose sharply on Wednesday as the political turmoil in Washington deepened.

The most active gold contract for June delivery jumped 22.3 U.S. dollars, or 1.80 percent, to settle at 1,258.7 dollars per ounce.

Concerns flared up following a New York Times report which claimed President Donald Trump tried to influence an FBI probe into links between his aides and Russia.

Traders feared that one after another allegations surrounding President Trump might sidetrack his ambitious economic growth programs, such as tax cuts and regulatory reform.

As a result, the U.S. dollar index fell by 0.59 percent to 97.42 as of 1815 GMT.

The index is a measure of the dollar against a basket of other major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes down, gold futures will rise.

Meanwhile, the Dow Jones Industrial Average fell 1.49 percent and the Nasdaq Composite Index slumped 2.10 percent as of 1825 GMT. When equities post losses, the precious metal usually rises.

As for other precious metals, silver for July delivery rose 15.9 cents, or 0.95 percent, to close at 16.906 dollars per ounce. Platinum for July delivery was up 9.1 dollars, or 0.97 percent, to close at 946.1 dollars per ounce. Endit