Gold holds steady as investors seek clarity G

Precious metal likely to hold $1,310-$1,320 range this week, analyst says

old was range-bound yesterday, with gains capped by a firmer dollar as investors awaited further news on US-China relations after President Donald Trump’s State of the Union speech offered little clarity on the trade front.

Uncertainties surrounding Brexit and the threat of another government shutdown in the United States over Trump’s call for a border wall with Mexico kept bullion supported, analysts said.

Spot gold was 0.1 per cent lower at $1,313.39 per ounce at 1047 GMT. US gold futures were also down 0.1 per cent at $1,317.30 per ounce.

Liquidity remained low with China and several other markets in Asia still closed for the Lunar New Year holiday.

“There is lack of direction in the market and sentiment is neutral. The market wants more clarity on Brexit and the US-China trade front,” said ABN AMRO analyst Georgette Boele. Gold is likely to be

range-bound between $1,310 and $1,320 this week with $1,300 as the nearest support level, she added.

In his speech on Tuesday, Trump again vowed to build a border wall and said a trade deal was possible with China if Beijing agrees to “real structural change”.

“There was no huge market-related development out of Trump’s speech last night and the dollar has barely changed. Gold is still consolidating above $1,300,” Capital Economics analyst Ross Strachan said.

However, senior US and Chinese officials are poised to start another round of talks in Beijing next week.

The dollar index, which tracks the greenback against a basket of major currencies, was little changed after the US president’s address, standing near a two-week high. Investors are also keeping a close eye on signals from the US Federal Reserve on its future monetary policy trajectory.