Gold stays steady on dollar, US Treasuries

Gold steadied on Friday, but remained below last week’s threemonth top as the US dollar and Treasury yields came off their highs after the currency initially jumped on US President Donald Trump’s promise of a major tax announcement.

Spot gold was up 0.02 per cent at $1,230.78 an ounce, while US gold futures for April delivery settled down 0.07 per cent at $1,235.90. On Wednesday, spot gold reached its highest since mid-November at $1,244.67.

The dollar pared gains against a currency basket on Friday after earlier strength from US President Donald Trump’s pledge to announce a major tax plan within weeks cooled some market nerves, reinvigorating dollar bulls.

“The dollar puts a little pressure on gold, however the strength in the equity markets and the strength in the other precious metals is lifting gold up,” said Eli Tesfaye, senior market strategist for brokerage RJO Futures in Chicago, as gold prices moved into positive territory.

“It’s really the intermarket relationship that’s stabilising gold right now.”

Silver was up 1.5 per cent at $17.91 an ounce, after tapping $17.99, the highest since November 11. Palladium rose 1.6 per cent to $782, after rising to $786.40, the highest since January 25.

“Both silver and palladium are up as an improving China signals a better global economy and gives support to the more industrial metals of the group,” said Miguel Perez-Santalla, vice president of Heraeus Metal Management. Earlier in the session, however, gold prices were lower.

“The Trumpflation trade is back on the agenda, which is negative for gold,” Commerzbank analyst Carsten Fritsch said.