Spot Gold eased from a 12-week high of $2,763.43 per troy ounce on Thursday, as the US Dollar firmed.
“It’s just a technical pullback because the dollar has been taking back on $108 level, triggering some profit-booking, but the undertone for gold is expected to be positive,” Ajay Kedia, director at Kedia Commodities, was quoted as saying by Reuters.
Market players remained focused on US President Donald Trump’s trade policies, as he has proposed levies of about 25% on Mexico and Canada and 10% on China from February 1st.
In case Trump’s policies lead to a strong inflationary push, the Federal Reserve may be prompted to restrain monetary easing, while this could weigh on Gold.
The Fed is expected to leave its key interest rate on hold at its upcoming policy meeting on January 28th-29th.
Meanwhile, ECB policy makers have supported further rate cuts, indicating a reduction next week is almost certain.
Spot Gold was last inching down 0.06% to trade at $2,754.64 per troy ounce.
Gold Futures for delivery in February were edging down 0.35% on the day to trade at $2,761.11 per troy ounce.
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