Gold holds steady

BENGALURU. — Gold held steady yesterday hitting a one-week high in the previous session, as traders waited to see if the US Federal Reserve will keep its interest rates unchanged amid uncertainty over the policies of President Donald Trump.

Spot gold was little changed at $1 210,79 per ounce by 3.20am GMT. US gold futures climbed 0,1 percent to $1 209,40. Spot gold gained more than 5 percent in January — its best month since June 2016 — as investors sought safe ground.

“The uncertainty the Trump government brings has worried the markets. What Trump does is beyond our expectations and people are kind of playing it safe by holding gold positions and waiting to see what happens in other markets,” said Yuichi Ikemizu, head of commodity trading at Standard Bank in Tokyo.

The dollar suffered its worst January in three decades after President Trump complained that every “other country lives on devaluation”. The comments intensified the expectation that the new US administration was making moves to talk down the greenback just hours after Trump’s top trade adviser, Peter Navarro, told Financial Times that Germany was using a “grossly undervalued” euro to gain advantage over the US and its own EU partners. The Fed is expected to keep US interest rates unchanged on Wednesday in its first policy decision since Trump took office, as the central bank awaits greater clarity on his economic policies.

“They (Fed officials) might emphasise that they want to raise rates in the future, but there is not going to be any surprises,” Ikemizu said. — Reuters.