Gold slips

BENGALURU. — Gold slipped yesterday in a technical correction following an 8 percent rally since mid-December that was stoked by the fear about US President Donald Trump’s protectionist trade policies.

Spot gold prices dipped 0,3 percent to $1 204,80 per ounce at 4.16am GMT. US gold futures slipped 0,5 percent to $1 204,80 per ounce.

The dollar index, which measures the greenback against a basket of currencies, fell 0,1 percent to 100,220.

“Gold prices have moved higher since the beginning of the year and need some technical correction in the very short term,” said Jiang Shu, chief analyst at Shandong Gold Group.

“Generally, there would be huge volatility during the Spring Festival in China as the markets are closed for a week. Gold might test the levels of $1 185 during the period.”

Spot gold was due for a deep correction, following its failure to break a strong resistance at $1 219 per ounce, Reuters technical analyst Wang tao said. “Gold seems to be stuck in the range of $1 210 as the market lacks risk-off stories,” a Singapore based trader said.

Trump’s protectionist statements and a lack of detail on policy have led some investors to opt for gold, which is often seen as an alternative investment in times of geopolitical and financial turmoil. The metal hit a two-month peak of $1 219,59 on Tuesday.