LONDON: Gold steadied on Monday as political uncertainty created by US President Donald Trump`s move to ban people from seven Muslimmajority 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 0.1 per cent at $1,192.55 an ounce at 1425 GMT.

That compared with Friday`s 2-1/2-week low of $1,180.65. US gold futures gained 0.1pc to $1,189.8.

`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.

Higher rates could mean a higher U.S. currency, which makes dollar-denominated gold more expensive for holders of other currencies, potentially dampening demand.

Spot silver gained 0.3pc to $17.17 per ounce, platinum slid 1.1pc to $972.49 and palladium ceded 0.7pc to $730.5 per ounce.-Reuters