Jan 25 (Reuters) - Gold prices on Thursday edged to their highest since August, 2016, buoyed as the U.S. dollar hit three-year lows after comments by U.S. Treasury secretary Steven Mnuchin that he welcomed a weaker currency. Spot gold had risen 0.2 percent to $1,361.10 per ounce by 0258 GMT, after hitting its highest since Aug. 5, 2016 at $1,361.87. U.S. gold futures were up 0.3 percent at $1,360.60 per ounce. The dollar slumped after Mnuchin told the World Economic Forum in Davos on Wednesday that "obviously a weaker dollar is good for us as it relates to trade and opportunities". His comments were seen by markets as a departure from traditional U.S. currency policy. "Investors were more than willing to pay hefty insurance premia as a hedge against the inflationary impacts from a hapless dollar," said Stephen Innes, APAC head of trading at OANDA. "With traders' base case scenario to sell the dollar at all costs, gold prices should remain well supported on dips and could be poised to move even higher on the next U.S. dollar wobble." Reuters
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