LONDON: Gold firmed on Monday as the dollar softened, although moves were muted as markets awaited details on US President Donald Trump’s tax policy, and guidance on the pace of interest rate hikes from a raft of Federal Reserve (Fed) speakers this week.
The metal is highly sensitive to rising US rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced. Liquidity was thinned by the absence of US traders for the Presidents Day holiday.
Spot gold was up 0.2 percent at $1,237.67 an ounce by 1440 GMT, while US gold futures for April delivery were little changed at $1,238.90.
“We have settled into a $1,220-1,245 range, with activity expected to be light on Presidents Day,” Saxo Bank’s head of commodity strategy Ole Hansen said.
“Trump will continue to be a key source of market inspiration. Trump’s address to the joint session on Capitol Hill next Tuesday may become the next focus considering he is expected to lift the curtain on his tax cuts ideas.”
The dollar has lost some support in recent weeks as a lack of concrete detail dampened post-election euphoria over Trump’s commitment to cutting taxes and boosting spending.
The euro edged higher against the dollar after a slide in US bond yields, shrugging off worries over upcoming French elections.
The heads of five regional Fed banks are scheduled to speak this week. In addition, Fed Board Gov. Jerome Powell appears on Wednesday, when minutes of the last policy meeting are also due.
Speaking in Singapore on Monday, Cleveland Fed chief Loretta Mester said she would be comfortable raising rates at this point if the economy kept performing the way it had. Investor appetite has shown signs of easing since gold hit a three-month high on Feb. 8.
The world’s largest gold-backed exchange-traded fund, SPDR Gold Shares , reported an outflow of 2.4 tons on Friday, the first in nearly four weeks.
Data also showed on Friday that speculators cut their net long position in COMEX gold for the first time in three weeks in the week to Feb. 14.
“Whether investors continue to rotate away from non-yielding gold and toward risk assets depends on how soon details of President Trump’s fiscal stimulus plans become clearer, but overall the equity rally looks to have further to run,” Mitsubishi said in a note.
Silver was down 0.1 percent at $17.96 an ounce, platinum was 0.1 percent higher at $1,001.70 and palladium was down 0.5 percent at $771.30.
Gold firms as markets await Trump tax plans
Gold firms as markets await Trump tax plans
Closing Bell: Saudi main index rises to close at 11,251
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 84.27 points, or 0.75 percent, to close at 11,251.81.
The total trading turnover of the benchmark index was SR5.38 billion ($1.43 billion), as 188 of the stocks advanced and 67 retreated.
Similarly, the Kingdom’s parallel market Nomu gained 157.22 points, or 0.67 percent, to close at 23,643.74. This comes as 44 of the stocks advanced while 32 retreated.
The MSCI Tadawul Index gained 10.88 points, or 0.72 percent, to close at 1,517.43.
The best-performing stock of the day was Saudi Kayan Petrochemical Co., whose share price surged 9.96 percent to SR5.30.
Other top performers included Ataa Educational Co., whose share price rose 9.94 percent to SR57.50, as well as Rabigh Refining and Petrochemical Co., whose share price surged 5.74 percent to SR7.55.
Saudia Dairy and Foodstuff Co. recorded the most significant drop, falling 5.93 percent to SR220.50.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. also saw its stock prices fall 2.77 percent to SR43.56.
Zahrat Al Waha for Trading Co. also saw its stock prices decline 2.30 percent to SR2.55.
On the announcement front, Multi Business Group Co. reported its annual financial results for the year ended Dec. 31. According to a Tadawul statement, the firm recorded a net profit of SR352,172 during the year, down 98 percent from the previous year.
The company attributed the decline primarily to a 2 percent drop in building contracting revenues and a 73 percent decrease in gross profit.
Multi Business Group Co. ended the session at SR9.90, down 1 percent.
Hamad Mohammed Bin Saedan Real Estate Co. announced the signing of a memorandum of understanding with Saudi Awwal Bank to enhance collaboration in financing solutions, advance real estate development projects, and expand access to customer financing programs.
Hamad Mohammed Bin Saedan Real Estate Co. ended the session at SR6.67, up 1.21 percent.
