Gold at 2-month high; Should you sell in Dubai?

Gold prices rose on uncertainties over US policy after Donald Trump took over as president

Gold prices rose on Monday on a weaker dollar and safe-haven buying on uncertainties over US policy after Donald Trump was sworn in as president last Friday. Spot gold rose 0.5 percent, to $1,215.30 per ounce by 0051 GMT. US gold futures were up 0.9 percent at $1,215.10 by 0051 GMT. The dollar index, which measures the greenback against a basket of currencies, fell 0.2 percent to 100.540.  
Trump pledged to end the "American carnage" of social and economic woes in an inaugural address that was a populist and nationalist rallying cry, prompting investor concern about protectionist trade policies. Gold shrugged off better-than-expected US jobs, housing, and factory data that reinforced the view that the US economy is sufficiently robust to warrant interest rate rises. 
Precious metal funds saw their biggest inflow in five months and bond funds notched a fourth consecutive gain over the last week, as investors continued to hedge "Trump trades" put on late last year that bet on stronger growth and rising inflation. * Fears of inflexibility and rising costs are sapping enthusiasm for the London Metal Exchange's new suite of gold contracts.  Hedge funds and money managers raised their net long position in COMEX gold contracts for the second straight week, in the week to Jan. 17, US Commodity Futures Trading Commission (CFTC) data showed on Friday. 
Gold demand slowed in India as buyers postponed purchases on the expectation of a cut in import duty and after a rebound in prices, while it was tepid across other major trading centres in Asia.

• Gold and Forex