Gold rose to a three-month peak on Wednesday, as political risks posed by elections in Europe and worries over U.S. President Donald Trump's policies stoked safe haven demand. Spot gold rose 0.5 percent at $1,239.27 an ounce, after rising to its highest since Nov.11 at $1,244.67. Investors are concerned about the strong showing in the French presidential race of far-right candidate Marine Le Pen, who has promised to take France out of the euro zone and to hold a referendum on European Union membership. The euro recovered after falling against the dollar on political risks, as the single currency gained from investors' wariness over Trump's protectionism and immigration policy and his hints that he would prefer a weaker dollar. News about impeachment against Trump also stirred new worries about political risks in the U.S. There's underlying demand for gold as a hedge against political uncertainties on both sides of the Atlantic. Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, rose for a fifth straight session on Tuesday, showing strong market morale. Gold is expected to extend gains and breach across $1,250.
Silver rose 0.3 percent to $17.76 an ounce after rising to $17.87, its strongest since Nov. 11. On chart, silver tracked gold, but failed to cross over the strong resistance at the 200-day moving average. Consolidating under the level for a breakthrough, the white metal is quite likely to breach above the key mark as it further flattens.
 

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