LONDON: Gold hit its highest in 3-1/2 months on Friday as the dollar hit a one week low after the new US finance chief poured cold water on the `Trumpflation trade` that had boosted the greenback this year.

Treasury Secretary Steven Mnuchin said on Thursday that any steps US President Donald Trump`s administration takes on policy would probably have only limited impact this year, though he wants to see tax reform passed by August.

The comments suggested much work was still needed on the sweeping tax plan that Mnuchin called his main priority, and which investors had bet would stoke growth and inflation this year.

Spot gold had risen 0.29 per cent to $1,253.53 per ounce by 1445 GMT, having touched its highest since Nov.

11 at $1,260.10 earlier, zeroing in on the 200-day moving average. US gold futures rose 0.24pc to $1,254.40.

Silver rose 0.53pc to $18.26 per ounce, having touched its highest in 3-1/2-months at$18.40. Silver has gained about 1.5pc this week in what could be its ninth straight weekly gain. Platinum rose 1.24pc to $1,018.50 per ounce, having earlier hit its highest since early October at $1,028.60; while palladium gained 0.97pc to $781.25.-ReutersLONDON: Gold hit its highest in 3-1/2 months on Friday as the dollar hit a one week low after the new US finance chief poured cold water on the `Trumpflation trade` that had boosted the greenback this year.

Treasury Secretary Steven Mnuchin said on Thursday that any steps US President Donald Trump`s administration takes on policy would probably have only limited impact this year, though he wants to see tax reform passed by August.

The comments suggested much work was still needed on the sweeping tax plan that Mnuchin called his main priority, and which investors had bet would stoke growth and inflation this year.

Spot gold had risen 0.29 per cent to $1,253.53 per ounce by 1445 GMT, having touched its highest since Nov.

11 at $1,260.10 earlier, zeroing in on the 200-day moving average. US gold futures rose 0.24pc to $1,254.40.

Silver rose 0.53pc to $18.26 per ounce, having touched its highest in 3-1/2-months at$18.40. Silver has gained about 1.5pc this week in what could be its ninth straight weekly gain. Platinum rose 1.24pc to $1,018.50 per ounce, having earlier hit its highest since early October at $1,028.60; while palladium gained 0.97pc to $781.25.-Reuters