LONDON: Gold firmed on Monday as the dollar softened, although moves were muted as markets awaited details on US President Donald Trump’s tax policy, and guidance on the pace of interest rate hikes from a raft of Federal Reserve speakers this week.

The metal is highly sensitive to rising US rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced. Liquidity was thinned by the absence of US traders for the Presidents Day holiday.

Spot gold was up 0.2 per cent at $1,237.67 an ounce by 1440 GMT, while US gold futures for April delivery were little changed at $1,238.90.

“We have settled into a $1,220-1,245 range, with activity expected to be light on Presidents Day,” Saxo Bank’s head of commodity strategy Ole Hansen said.

“Silver was down 0.1pc at $17.96 an ounce, platinum was 0.1pc higher at $1,001.70 and palladium was down 0.5pc at $771.30.

Published in Dawn, February 21st, 2017