Gold prices flat

LONDON. — Gold prices were mostly flat yesterday as the dollar clawed back some recent losses and stocks rose, but US inflation fears kept buyers in the metal.

Spot gold was flat at $1,347.31/oz at 11.24am GMT.

The metal rose 2.4 percent last week in its biggest weekly gain in more than five months. US gold slipped 0.4percent to $1,350/oz.

“Gold is doing relatively well in a risk-on environment. The safe-haven appeal [in gold] is a bit in question but it has a lot to do with movements in the dollar which has recovered somewhat,” said ABN AMRO commodity strategist Georgette Boele.

The dollar index, which measures the green-back against a basket of currencies, was firm yesterday after shedding 1.4 percent last week.

Investors piled into gold last week on concerns that US inflation could heat up. In wider markets, world stocks extended their recovery on Monday while oil inched higher. The minutes of the US Federal Reserve’s last policy meeting, held amid the equities tumble on January 30-31, are due on Wednesday. Besides the outlook on rates, markets will be keen to see what the Fed made of the market gyrations.

A 37-page indictment filed by US Special Counsel Robert Mueller charged 13 Russians and three Russian companies with meddling in the 2016 US presidential election. Russia denounced the allegations. Gold is often used as a hedge against geopolitical uncertainty.

Hedge funds and money managers cut their net long positions in Comex gold in the week to February 13, US Commodity Futures Trading Commission data showed on Friday.