Jan 15 (Reuters) - Gold prices on Monday hit their highest since September, buoyed by a weaker U.S. dollar, which slumped to three-year lows against a basket of currencies. Spot gold was up 0.2 percent at $1,340.72 an ounce by 0302 GMT, after touching its strongest since Sept. 8 at $1,342.06 Spot gold rose for a fifth straight week last week, gaining 1.4 percent. U.S. gold futures were up 0.4 percent at $1,340.80 an ounce. "While the weaker dollar remained gold's primary driver, investors are keeping an eye on the simmering geopolitical hot spot in the Middle East," said Stephen Innes, APAC head of trading at OANDA. "Iran remains among the most poignant of geopolitical risks this year following President Trump's decision not to ratify Iran's compliance on the nuclear deal ... Gold investors are likely under-positioned for a significant escalation which could lead to considerable price increase." Iran's president said on Sunday the United States had failed to undermine a nuclear deal between Tehran and major powers, and hailed the accord as a "long-lasting victory" for Iran, state television reported. Reuters
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