• Gold slipped on Wednesday as the dollar recovered from over 7-week lows and traders waited to see if the U.S. Federal Reserve will keep its interest rates unchanged amid uncertainty over the policies of President Donald Trump.
• Spot gold edged down 0.2 percent to $1,208.67 an ounce by 0625 GMT. U.S.
• "The uncertainty the Trump government brings has worried the markets. What Trump does is beyond our expectations and people are kind of playing it safe by holding gold positions and waiting to see what happens in other markets," said Yuichi Ikemizu, head of commodity trading at Standard Bank in Tokyo.
• The dollar suffered its worst January in three decades after President Trump complained that every "other country lives on devaluation."
• The comments intensified expectations that the new U.S. administration was making moves to talk down the greenback just hours after Trump's top trade adviser, Peter Navarro, told the Financial Times that Germany is using a "grossly undervalued" euro to gain advantage over the United States and its own European Union partners.
• The dollar index, which measures the greenback against a basket of currencies, rose 0.3 percent to 99.788 as bargain hunters stepped in.
• The Fed is expected to keep U.S. interest rates unchanged on Wednesday in its first policy decision since President Trump took office, as the central bank awaits greater clarity on his economic policies.
• Spot gold is expected to retrace to a support at $1,197 per ounce, as it has more or less completed a bounce from the Jan. 27 low of $1,180.65, according to Reuters technical analyst Wang Tao.
• "We think that the bumpy start to Trump's presidency will likely continue for a little while longer, lending an uneasy tone to the markets, but one which will provide fertile upside ground for gold," INTL FCStone analyst Edward Meir said.
• Spot silver fell 0.7 percent to $17.41 an ounce, after touching its highest in more than 11 weeks at $17.61.
Reference: Reuters
Thai
Eng