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·         Gold prices held firm on Friday on political uncertainty in the United States, but were set for their fourth straight weekly loss due to expectations of an interest rate hike by the US Federal Reserve in June.

  Spot gold was unchanged at $1,224.63 per ounce at 6.33am. It hit an eight-week low of $1,213.81 an ounce on Tuesday.

 

The dollar index, which measures the greenbackagainst a basket of currencies, was down 0.1 percent at 99.570.

  ·         "Whatever Trump says is important and is affecting themarkets and may influence gold prices for the short-term," OCBCanalyst Barnabas Gan said.

 

"But, from the second half of the year it should depend onthe dollar strength and interest rate environment... We areexpecting another two hikes in 2017, which should be bearish forgold."

  ·         "While we are somewhat encouraged by the steadiness we areseeing in gold of late, we would still like to observe theaction from the sidelines for a little while longer in order tomake sure that this is not another bull trap," INTL FCStoneanalyst Edward Meir said.

  ·         Spot gold may drop to $1,209 per ounce, as its downtrendfrom the April 17 high of $1,295.42 remains steady, Reuterstechnical analyst Wang Tao said.  

  ·         Among other precious metals, silverrose 0.6 percentto $16.39.

 

Reference: Reuters