Gold prices extended gains for a fourth day on Tuesday as political troubles and weaker-than-expected housing data in the United States dented the dollar while a more upbeat scenario in Europe lifted the euro. Spot gold was up 0.6 percent at $1,237.85 an ounce, after rising to $1,239.10, the highest since May 4. The dollar index slipped to the weakest in more than six months after two U.S. officials said President Donald Trump disclosed highly classified information to Russia's foreign minister about a planned Islamic State operation.
Investors regarded Trump's difficulties as another obstacle to planned U.S. tax cuts and infrastructure spending. Also pressuring the dollar, the Commerce Department said housing starts dropped to the lowest level in five months. At the same time, markets were cheered by the outlook for Europe after German Chancellor Angela Merkel and new French President Emmanuel Macron agreed to draw up a roadmap to deepen European Union integration. Gold steadied after the euro rallied.
Investors may become more cautious, however, due to recent global developments including a North Korean missile test and the "ransomware" cyber attack, which could lift gold prices over the next two weeks.
Silver extended gains for a fourth day on Tuesday. It rose 1.3 percent at $16.81 an ounce after tapping $16.86, the highest since May 3. Technical indicators provided a floor to prices. A golden cross was formed in the MACD, suggesting a bullish trend in the near term. The metal is expected to recover to around $17.2.

 
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