Prices of gold stable, supported by weaker dollar

Price of gold

The prices of gold remained steady on Monday, supported by a weaker dollar and lower equities, with markets in the United States closed for the Presidents Day holiday.

Spot gold changed slightly at $1,235.10 per ounce, while U.S. gold futures went down 0.2 percent, to $1,236.5.

The dollar index, which measures the dollar against a basket of major currencies, went down 0.1 percent to 100.88.

Asian share markets got off to a rocky start on Monday due to political uncertainty keeping investors wary, while the U.S. dollar weakened ahead of a busy week for Federal Reserve speakers. With markets in the U.S. closed for the Presidents Day holiday, turnover was light.

A handful of results from retailers due this week will be monitored for a read on spending as well as for commentary from executives on the proposal of U.S. President Donald trump to impose tax on imports.

For the first time in seven weeks, Gold began trading at a discount to official prices in India on Friday. Buyers elsewhere in Asia refrained from purchases, waiting for rallying bullion prices to settle.

The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings went down from 843.54 tons on Thursday to 0.28 percent or 841.17 tons on Friday.

According to U.S. Commodity Futures Trading Commission data revealed on Friday, hedge funds and money managers cut their net long position in COMEX gold for the first time in three weeks.

Investment flows into the euro zone surged in December while the 19-country bloc's adjusted current account surplus narrowed slightly.

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