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Gold May 29, 2017 04:56:49 AM

Gold steady near 4-week highs as geopolitical worries support

Anil Mathews
ScrapMonster Author
Gold held near its highest in four weeks on Monday after rising almost 1 percent in the previous session, buoyed as geopolitical tensions boosted its safe-haven appeal. Spot gold was almost flat at $1,267.01 per ounce at 0801 GMT.

Gold steady near 4-week highs as geopolitical worries support

Reuters - Gold held near its highest in four weeks on Monday after rising almost 1 percent in the previous session, buoyed as geopolitical tensions boosted its safe-haven appeal. Spot gold was almost flat at $1,267.01 per ounce at 0801 GMT.

On Friday, it climbed 0.9 percent to touch its strongest since May 1 at $1,269.50. U.S. gold futures slipped 0.1 percent to $1,266.9. "Asian trade on Monday was a relatively muted affair, with early session interest following a reported North Korean missile test soon fizzing out," Sam Laughlin, senior precious metals trader at MKS said in a note.

Gold held a narrow range on Monday as Chinese markets were closed for a two-day break, he added. Chinese markets are closed on Monday and Tuesday for the Dragon Boat festival. Spot gold may climb to $1,276 per ounce, as it has broken above a resistance at $1,264, said Reuters technical analyst Wang Tao.

Political tensions surrounding U.S. President Donald Trump are providing some safe-haven support for gold, OCBC analyst Barnabas Gan said. The market is also watching out for the Federal Open Market Committee meeting next month for any cues on U.S. Federal Reserve's stance on interest rate hikes and balance sheet reduction intentions, Gan added. Trump attacked the news media and dismissed leaks from the White House as "fake news" on Sunday, following reports his son-in-law tried to set up a secret channel of communications with Moscow before he took office.

The ongoing furore has raised concerns about his ability to push through promised fiscal stimulus. "We remain friendly on gold and suspect that we will likely push higher over the course of the coming week," INTL FCStone analyst Edward Meir said in a note. "A weaker dollar, coupled with rising geopolitical tensions should keep the precious metal relatively buoyant." Hedge funds and other money managers increased their net long position in COMEX gold for the first time in four weeks, in the week ended May 23, U.S. Commodity Futures Trading Commission (CFTC) data showed.

Many traders will be away from their desks for public holidays in the United States and Britain on Monday, with U.S. gold futures closing early. Meanwhile, silver touched its highest since April 28 at $17.39 earlier in the day. It was last flat at $17.36 per ounce. Silver's more than 3 percent gain over last week was its biggest weekly gain since the week ended Jan. 6. Platinum rose 0.3 percent, to $958.30 per ounce. Palladium, was up 0.4 percent at $793 per ounce after hitting a near two-week peak of $796.70 early in the session.

Courtesy : Reuters

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