May 29, 2017 / 1:08 AM / 2 months ago

PRECIOUS-Gold holds near 4-week highs, political tensions support

3 Min Read

    May 29 (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.  
  
    
    FUNDAMENTALS    
    * Spot gold        was flat at $1,266.40 per ounce at 0044
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 $1,266.4
an ounce.
    * North Korea fired what appeared to be a short-range
ballistic missile on Monday that landed in the sea off its east
coast, South Korea's military said, the latest in a series of
missile tests defying world pressure and threats of more
sanctions.                
    * U.S. President Donald 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 Trump took office.
             
    * British Prime Minister Theresa May's lead over the
opposition Labour Party has narrowed sharply, according to
opinion polls published since the Manchester attack, suggesting
she might not win the landslide predicted just a month ago.
               
    * The U.S. economy slowed less than initially thought in the
first quarter, but softening business investment and moderate
consumer spending are clouding expectations of a sharp
acceleration in the second quarter.             
    * Heavy rains and a cyclone led to an 8 percent, or 6-tonne
drop in Australian gold production in the first quarter, a
survey released on Sunday showed.             
    * 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 on Friday.             
    * Gold demand in Asia tapered off this week as buyers took
to the sidelines in India to await a new national tax policy and
as China entered a seasonal slowdown.             
    * The state-backed Russian Direct Investment Fund (RDIF) and
China's Fosun International Ltd           could announce an
investment in Russia's top gold producer Polyus           in
early June, a source familiar with the talks told Reuters.
            
        
    DATA/EVENT AHEAD (GMT) 
    * No major data scheduled for Monday May 29. 
    * Chinese markets shut on May 29-30 for Dragon Boat
Festival. 
    * Many traders will also be away from their desks for public
holidays in the United States and Britain on Monday, with U.S.
gold futures closing early.

 (Reporting by Vijaykumar Vedala in Bengaluru; Editing by Joseph
Radford)
  

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