Gold steady as market seeks signals on US rates, taxes
Traders are waiting for the minutes from the US Federal Reserve’s last meeting, due on Wednesday evening
London — Nervous investors looked for new signals on whether US interest rates would rise in March and on US President Donald Trump’s tax plans as gold held steady on Wednesday. "We see the risks as pretty binary in the gold market," Carsten Menke, commodities research analyst at Julius Baer in Switzerland, said. "We still think the FOMC will go for a rate hike in March, which is not yet priced in, so we could see quite a bit of a setback towards $1,200 or below." Traders are waiting for the minutes from the US Federal Reserve’s last meeting, due at 7pm GMT on Wednesday. "On the other hand, if Trump comes along with more tweets or executive orders, than we might well see more (investment) inflows," Menke said, suggesting the purchase of out-of-the-money call options. Spot gold had edged up 0.1% to $1,236.77 per ounce by 3pm GMT, while US gold futures dipped 0.1% to $1,238. Spot gold dropped as much as 1% to touch a one-week low of $1,225.73 in the previous session. "Uncertainty is r...
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