Gold on Wednesday held near a six-week high hit in the previous session, with economic and political uncertainty boosting its safe-haven appeal. Markets were waiting for indications on policy from US President-elect Donald Trump's first news conference since the US elections, due later in the day. "The markets are myopic. There are immediate concerns over the global economy, at least in the first half of the year," said Barnabas Gan, an analyst at OCBC Bank in Singapore.
He added that focus was on events such as Britain's exit from the European Union, French elections in April and the impact of Trump's trade policies when he takes up his post in the White House later this month. Spot gold was up 0.1 percent at $1,188.86 an ounce by 0630 GMT. Bullion, often seen as an alternative investment during times of political and financial uncertainty, on Tuesday reached its highest level since November 30 at $1,190.46.
US gold futures gained 0.3 percent to $1,188.70 per ounce. "Greater than usual market sensitivity to Trump's comments and actions may persist until the market becomes used to him in office. This could take several months. Thus gold prices may be more volatile than usual," said James Steel, chief metals analyst for HSBC Securities in New York.
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