Gold rose on Monday as political uncertainty created by US President Donald Trump's move to ban people from seven Muslim-majority countries, and by elections in Europe, supported prices. Traders reported subdued activity because of the Lunar New Year holiday in many Asian countries and some nervousness before the Federal Reserve's two-day meeting on monetary policy starting on Tuesday.
Spot gold was up 0.4 percent at $1,196.20 an ounce by 3:18 pm EST (2018 GMT). That compared with Friday's 2-1/2-week low of $1,180.65. US gold futures settled up 0.4 percent at $1,193.20 per ounce. "There is an element of geopolitical risk which is supporting the gold market," said James Steel, chief metals analyst for HSBC Securities in New York.
Trump's administration tempered a key element of his immigration ban, but the move reinforced growing worries about investing in the United States, analysts said. "Gold's future direction will depend on the dollar, US monetary policy and long-term interest rates," said Commerzbank analyst Carsten Fritsch. "The immigration ban added to risk-off sentiment and boosted gold earlier ... There is also political risk coming up in the form of elections in France and the Netherlands." Among other precious metals, spot silver gained 0.08 percent at $17.13 per ounce. Platinum rose 0.2 percent at $986 and palladium gained 0.1 percent at $737.
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