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Thursday trade saw bullion prices gaining traction on the green at the Multi Commodity Exchange following the US central bank’s decision of keeping its interest rates steady late Wednesday at the conclusion of its first policy meeting for fiscal year 2017 and since President Trump was inaugurated.

As the dollar continues to weaken over Trump uncertainty, gold hit a more than one-week high on Thursday trade as bullion for immediate trade gained 0.94 percent at $1220.81 per ounce at the moment of writing. Its intraday high currently sits at $1223.88—the highest since January 24, while the US gold for future delivery was up 0.8 percent at $1,218.10.

The dollar dips even further with the DXY index quote edging 0.2 percent lower to 99.468 amid uncertainty over the laid-out plans and policies of President Trump and the Fed’s seemingly dovish move to keep the status quo of its interest rates. However, market sentiment has seen some silver lining when the US Federal Reserve painted a fairly optimistic picture of the US economy that indicate that the central bank is still keen on tightening its monetary policy within the year.

"The sharp rebound after a pull down below $1,200 and the Asian pricing model, despite the Chinese New Year, seem favorable and we see a lot of bullish signals," Singapore’s Kaloti Precious Metals general manager Spencer Campbell said.

"We are sort of eyeing the $1,225 levels in the next move if the metal breaks the recent highs of around $1,215," Campbell added.

The yellow metal for immediate delivery broke out of a resistance at $1,219 per ounce with its found support at $1,197.

Gold has become investors’ safe haven for the short term as the platform with which the dollar is standing continues to wobble.

"Additionally, there are signs that ETF holders are adding again, and that after some reduction in length on the CME, buyers may be returning," said Nicholas Frappell, general manager at ABC Bullion.

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The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust’s shares inched up 1.34 percent from 799.07 tons on Tuesday to 809.74 tons on Wednesday.

Market observers trimmed their net long positions down a little in COMEX gold contracts in the week to January 24 as data released by the US Commodity Futures Trading Commission reveal.

Bullion rose to more than 5 percent in January, the best record since June 2016 as the greenback is dragged down to its worst open of the fiscal year in thirty years.

Bullion went on a three-day rally before paring a few gains in the previous session then bounced back higher for the current session. Its 14-day RSI (Relative Strength Index) hovers near the overbought level at 62.93 while its 20-day CCI (Commodity Channel Index) is a few points shy of crossing the +100 territory at 97.13. Once it reaches or breaks out of the +100 mark, this would indicate that the bullion is well above its average price thus generates a buy signal.

However, since the bullion is mostly dependent on the rise and fall of the dollar, a continuous rally is hard to expect since the US currency is currently highly volatile thus compromising any further upward movement of the precious metal.

Concerning other precious metals, silver for immediate delivery was up 0.5 percent to $17.60 per ounce. Platinum hit $1,0005.70—record levels not reached since November 2016—before settling 0.4 percent higher at $1,000.35.

Palladium moved 0.8 percent up to $768.50 per ounce.

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