GOLD prices gained on Tuesday (Jan 14), amid uncertainty around the incoming Trump administration’s policies and fresh positioning ahead of crucial US data for further cues on the Federal Reserve’s monetary policy.
Spot gold rose 0.3 per cent to US$2,671.13 per ounce as at 0101 GMT. US gold futures gained 0.4 per cent to US$2,688.40.
The bullion fell about 1 per cent in the last session as a strong US dollar, buoyed by robust jobs data last week, dampened investor appetite for the precious metal.
The strong jobs report also reinforced the Fed’s cautious stance on further rate cuts this year, while concerns grew that tariffs imposed by president-elect Donald Trump could fuel inflation.
US consumers’ outlook on the expected path of inflation was mixed last month, a survey by the New York Federal Reserve showed on Monday.
Bullion is used as a hedge against inflation, although higher interest rates reduce the non-yielding asset’s appeal.
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Investors now await US consumer price index data on Wednesday and the producer price index report later in the day for further insights into the economy and the Fed’s policy path. Several Fed officials are also due to speak this week.
Comex gold speculators raised net long positions by 12,116 contracts to 194,499 in the week to Jan 7, data showed.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.26 per cent to 874.52 tonnes on Monday from 876.82 tonnes on Friday.
Spot silver added 0.2 per cent to US$29.67 per ounce and palladium rose 0.3 per cent to US$941.26. Platinum dropped 0.1 per cent to US$952.78. REUTERS
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