Gold slipped on Wednesday as the dollar recovered from over 7-week lows and traders waited to see if the US Federal Reserve will keep its interest rates unchanged amid uncertainty over the policies of President Donald Trump. Spot gold edged down 0.2 percent to $1,208.67 an ounce by 0625 GMT. US gold futures slipped 0.1 percent to $1,207.80.
Spot gold gained more than 5 percent in January - its best month since June 2016 - as investors sought safe ground. "The uncertainty the Trump government brings has worried the markets. What Trump does is beyond our expectations and people are kind of playing it safe by holding gold positions and waiting to see what happens in other markets," said Yuichi Ikemizu, head of commodity trading at Standard Bank in Tokyo.