Gold makes run toward $1,300 as risk flares from UK to West Asia

Gold is taking aim at $1,300 an ounce. The metal has rallied to the highest since November as investors position themselves for the outcome of the UK election and potential drama of former FBI Director James Comey's testimony, while also tracking tensions in the West Asia. Bullion for August delivery was at $1,292.70 an ounce at 7:32 am on the Comex in New York, holding near Tuesday's intraday peak of $1,298.80, the highest level since November 4, according to Bloomberg generic pricing. The climb has been supported by a fall in the dollar, which has sunk to the lowest since October. Gold is 12 per cent higher in 2017, and a Bloomberg survey this week signals more gains. The latest leg up has been buttressed by rising haven demand as UK voters head to the polls on Thursday, with the result set to dictate how the country handles Brexit. Commodity Trading Tips

The same day, Comey appears before a Congressional panel to testify about his probe into President Donald Trump campaign's ties to Russia, while the European Central Bank issues a policy decision. "The two main drivers of gold are the value of the dollar and uncertainty," said Jeffrey Halley, market strategist at Oanda Corp in Singapore, referring to the West Asia tensions, the ECB decision and the UK election. "We have both in abundance at the moment. The double whammy has seen traders pile into gold and, given the power of the rally this week, I can't see any other outcome than a test of $1,300 sooner rather than later." Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed ties with Qatar on Monday citing its support for rival Iran and for extremist groups. The crisis pits US allies against each other, disrupting trade, flights and business activity in one of the world's most strategically important regions. Astrology and Numerology Trading Tips