Gold demand in Singapore in 1993 was at 21.4 tonnes and in Malaysia it stood at 22.4 tonnes. Six years after Singapore implemented the GST in in 1994,and Singapore only recorded 12.1 tonnes while Malaysia raked up 21.1 tonnes - Reuters Photo.
BENGALURU: Gold prices rose on Monday to the highest in two months as investors sought safer assets amid uncertainty around the economic policies of new US President Donald Trump and as the dollar declined against other major currencies.
Spot gold rose 0.7% to US$1,217.81 per ounce by 0303 GMT. It earlier touched a high of US$1,219.43, the most since Nov 22.
US gold futures were up 1.1%, to US$1,218.20 at 0303 GMT.
The dollar index, which measures the greenback against a basket of currencies, fell for a second day by 0.4% to 100.310.
Trump, who took power as the 45th president of the United States on Friday, 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.
With the lack of a clear policy direction from Trump, the market movement is a sign that risk aversion is back on the table, OCBC analyst Barnabas Gan said.
Data from US Commodity Futures Trading Commission (CFTC) on Friday underscored investors' bullish gold views. The CFTC reported that speculators raised their net long positions during the week to Jan 17 in COMEX gold contracts for the second straight week.
Bank of America Merrill Lynch said last week that precious metal funds had their biggest inflow in five months, according to data through to last Wednesday.
Bond funds also notched a fourth consecutive gain over the last week, as investors continued to hedge against the so-called "Trump trades" put on late last year that bet on stronger growth and rising inflation.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.2% to 809.15 tonnes on Friday from 807.96 tonnes on Thursday.
Philadelphia Federal Reserve president Patrick Harker said on Friday he expected three interest rate increases in 2017 if the labour market improves further and inflation moves to the Federal Reserve's 2% goal.
?Tone set by Trump will likely lead the markets to conclude that Trump's legislative goals may now be harder to achieve as there will not be much bipartisan goodwill or a honeymoon period to work with," INTL FCStone analyst Edward Meir said.
?"All this means is that investors could now start to coalesce around the notion that the Fed will stay on hold for longer than expected, which in turn should be constructive for gold."
Among other precious metals, silver rose 0.8% to US$17.20.
Platinum rose 0.2% to US$982.70. Palladium rose 0.3% to US$789.80. It hit a high of US$792.90 in the previous session, the most since May 2015. - Reuters
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