Gold rallied to hit a two-month high this morning as the dollar faltered following US President Donald Trump's inauguration Friday evening.
Gold, which is seen as a safe haven asset, reached as high as $1,218 as uncertainty surrounding Trump's economic policies continued. However, the yellow metal has fallen short of breaking $1,220 for the second time in a week now, according to analysts at Accendo Markets.
At the time of publishing, gold was up 0.65 per cent, at $1,212.70.
Meanwhile, spot gold shot as high as $1,219.43, its highest level since 22 November. At the time of publishing, it was up 0.19 per cent to $1,212.59.
The dollar index, which measures the greenback against a basket of currencies, fell 0.5 per cent to 100.23 after Trump made a populist and nationalist appeal in his inaugural address, which added to investors' concerns about protectionist trade policies.
OCBC analyst Barnabas Gan said the market could witness volatility into the first 100 days of the Trump administration, Reuters reported.
The pound traded as high as $1.2472 against the dollar, its highest since mid-December, before paring some gains.
INTL FCStone analyst Edward Meir said investors could now start to favour the idea that the Federal Reserve will stay on hold for longer than expected, which in turn should be a boon for gold.