Gold gains on uncertainty over Trump policies; US data awaited

Gold prices gained on Tuesday, amid uncertainty around the incoming Trump administration’s policies and fresh positioning ahead of crucial U.S. data for further cues on the Federal Reserve’s monetary policy.

FUNDAMENTALS

* Spot gold rose 0.3% to $2,671.13 per ounce as of 0101 GMT. U.S. gold futures gained 0.4% to $2,688.40.

* The bullion fell about 1% in the last session as a strong U.S. dollar, buoyed by robust jobs data last week, dampened investor appetite for the precious metal.

* The strong jobs report also reinforced the Fed’s cautious stance on further rate cuts this year, while concerns grew that tariffs imposed by President-elect Donald Trump could fuel inflation.

* U.S. consumers’ outlook on the expected path of inflation was mixed last month, a survey by the New York Federal Reserve showed on Monday. * Bullion is used as a hedge against inflation, although higher interest rates reduce the non-yielding asset’s appeal. * Investors now await U.S. consumer price index (CPI) data on Wednesday and the producer price index (PPI) report later in the day for further insights into the economy and the Fed’s policy path. Several Fed officials are also due to speak this week.

* COMEX gold speculators raised net long positions by 12,116 contracts to 194,499 in the week to Jan. 7, data showed.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.26% to 874.52 tonnes on Monday from 876.82 tonnes on Friday.

* Spot silver added 0.2% to $29.67 per ounce and palladium rose 0.3% to $941.26. Platinum dropped 0.1% to $952.78.

DATA/EVENTS (GMT) 1330 US PPI Machine Manuf’ing Dec