Washington, US (BBN) – Gold prices inched up in Asia on Tuesday with risk sentiment dominating though Australia’s central bank sent a clear signal it sees an end to global monetary easing for now.
Gold for April delivery on the Comex division of the New York Mercantile Exchange rose 0.17 per cent to $1,234.25 a troy ounce, reports Investing.com.
Also on the Comex, silver futures for March delivery inched up 0.02 per cent to $17.697 a troy ounce, while copper slipped 0.38 per cent to $2.641 a pound.
“There is no longer an expectation of further monetary easing in other major economies,” the RBA statement on Tuesday annoucing rates on hold at a record low 1.5 per cent said.
“The board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.”
Overnight, gold prices added to overnight gains in North American morning trade on Monday, hitting the strongest level since November as investors sought the perceived safety of the yellow metal amid growing concerns over political risks around the globe.
Prices of the yellow metal climbed 2.4 per cent last week, its best weekly gain in seven months.
Investors continued to pile in to gold as they eyed political risk elements, with President Donald Trump’s administration on the back foot over its immigration and other policies.
In the euro zone, traders are monitoring developments in countries where anti-establishment movements are gaining traction ahead of elections.
French far-right presidential candidate Marine Le Pen unveiled a manifesto pledge to take her country out of the euro over the weekend, underscoring political risk in the world’s biggest single market.
Investors often buy gold as a refuge against economic and political uncertainty.
Meanwhile, market players pondered how the latest US jobs report will affect the pace of Federal Reserve interest rate hikes this year.
US employers added 227,000 workers in January, the biggest gain in a month since September.
However, unemployment edged up to 4.8 per cent as more people looked for work, and the pace of wage growth slowed.
The weak wage growth was seen as weakening the case for near-term interest rate hikes.
Gold is sensitive to moves in US rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.