• Gold was steady on Tuesday, after falling from a three-and-a-half-month high in the previous session, as investors awaited a speech by US President Donald Trump later in the day for more clarity on his economic policy.
• Spot gold was little changed at $1,252.90/oz at 2.41am GMT. The metal hit its highest since November 11 at $1,263.80 in the previous session on Monday.
• Investors are looking towards Trump’s policy speech to a joint session of Congress on Tuesday night where he is expected to provide clues on his plans to cut taxes. "We will have to see what happens later tonight and through Wednesday post [Trump’s] address, but we suspect that any ‘Trumpflation’ type of reaction will be relatively short-lived," said INTL FCStone analyst Edward Meir.
• Trump on Monday said he would propose a budget that would ramp up spending on defence, but seek savings elsewhere to pay for it. "A possible setback could set in [gold] over the next 24 hours, but we still could end the week on a firmer note, especially if Janet Yellen’s testimony on Friday lays open the possibility that the Fed is likely to pass on a rate move in March," Meir said.
• "Persistent speculation about Greek fiscal policy and looming elections in the Netherlands and France are contributing to the geopolitical uncertainty on the part of the European continent," Heraeus Metal Management said in a note.
• "We continue to see gold well supported — overcoming resistance at $1,249/oz may suggest higher prices. We see the next resistance level at $1,278 and also the $1,300 mark is moving into the sight of investors."
• Spot gold still targetted $1,278/oz, following its break above a resistance at $1,249, Reuters Technical analyst Wang Tao said.
• Spot silver rose 0.4% to $18.31/oz. The metal hit a three-and-a-half-week high at $18.48 in the previous session.
Thai
Eng