* Dollar index marks lowest since November * Spot gold may rise more to $1,245 per ounce- technicals * Platinum hovers near two-week highs touched Monday
(Adds quotes, updates prices, adds LONDON dateline) LONDON, May 16 (Reuters) - Gold prices extended gains for a fourth day on Tuesday as political troubles in the United States dented the dollar while a more upbeat scenario in Europe lifted the euro. "The dollar is weak today, which has helped precious metals across the board," said Carsten Menke, analyst at Julius Baer in Zurich, saying the move in the greenback was a combination of events in the United States and Europe.
Spot gold was up 0.4 percent at $1,234.63 per ounce
at 1000 GMT. On Monday, it hit $1,237.26, its highest since May 4.
U.S. gold futures gained 0.4 percent to $1,234.40 an
The dollar index slipped to the weakest in over 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 which had boosted the dollar in the months following the November election. At the same time, markets were cheered about the outlook in Europe after German Chancellor Angela Merkel and new French President Emmanuel Macron agreed on Monday to draw up a roadmap to deeper European Union integration while economic growth data and German investor morale on Tuesday were strong.
"The weekend German state elections were favorable for (Chancellor Angela) Merkel and after the French elections, the risk backdrop in Europe is diminishing," Menke said. Gold is used as an alternative investment during times of political and financial uncertainty. Risk aversion sentiment may rise, however, due to recent global developments including the North Korean missile test and the massive "ransomware" cyber attack, lifting gold prices over the next two weeks, said Mark To, head of research at Hong Kong's Wing Fung Financial Group. Spot gold may rise more to $1,245 per ounce, as it has cleared a resistance at $1,233, according to Reuters technical analyst Wang Tao.
Among other precious metals, silver rose 0.8 percent
to $16.72 an ounce. "Although there is increasing evidence of a bottom being formed in both gold and silver, we would like to see a bit more "staying power" before choosing to engage more aggressively on the long side," INTL FCStone analyst Edward Meir said.
Platinum held near a two-week high hit on Monday,
adding 0.4 percent to $931.25 per ounce. Producers, fabricators and traders have gathered for the Platinum Week in London.
Palladium gained 1 percent to $804.70 an ounce.
(Additional reporting by Vijaykumar Vedala in Bengaluru, reporting by Louise Heavens)