* Technicals see spot gold testing support at $1,307
* Platinum dips to over 3-month low
* Silver remains near 2-week lows
By Sethuraman N R
Oct 4 Gold fell to its lowest in over two-weeks
on Tuesday as the dollar gained strength after upbeat U.S.
Spot gold edged down 0.3 percent to $1,307.70 an
ounce by 0708 GMT. Bullion earlier fell to as low as $1,307.15,
its lowest since Sept. 16.
U.S. gold futures fell 0.2 percent at $1,310.70 an
U.S. factories ramped up activity in September, shaking off
a one-month contraction in a sign the United States was
resisting the downward pull of the sluggish global economy.
The dollar index, which measures the greenback
against a basket of currencies, nudged up over 0.5 percent to
"Gold prices at this moment are under pressure," said Mark
To, head of research at Hong Kong's Wing Fung Financial Group.
"Despite the fact that we saw different types of crisis from
Deutsche Bank to Brexit, we can see that prices haven't gone
beyond the resistance at $1,350. It is a pessimistic sign that
even the speculators could not capitalise on the so-called bad
To sees $1,270 to $1,300 an ounce as the immediate support
level for gold over the next few days.
Positive economic data usually puts pressure on gold prices
as it increases expectations of a U.S. interest rate hike that
would increase the opportunity cost of holding non-yielding
Still, the U.S. Federal Reserve remains cautious about
raising rates since it would not be able to cut them back as
aggressively as it did before the recession of 2007 in the event
of a new recession in the next few years, New York Fed President
William Dudley said on Monday.
Spot gold is expected to test a support at $1,307 per
ounce, a break below which could cause a loss to the next
support at $1,299, according to Reuters technical analyst Wang
Chinese markets being shut for the Chinese National Day
holidays from Oct. 1-9 will mean gold markets will be quiet.
"Lack of Chinese participation will likely keep the metal in
a consolidation phase this week," MKS PAMP Group trader James
Silver fell to as low as $18.68 an ounce, which
matched the two-week low hit in the previous session, though it
was trading up 0.3 percent at $18.78.
Platinum fell to $996.95 an ounce, its lowest since
Palladium was down 0.2 percent to $709.10.
(Reporting By Nallur Sethuraman in Bengaluru; Editing by
Christian Schmollinger and Amrutha Gayathri)