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3 months ago
PRECIOUS-Gold steady near 4-week highs as geopolitical worries support
May 29, 2017 / 4:33 AM / 3 months ago

PRECIOUS-Gold steady near 4-week highs as geopolitical worries support

    * U.S. markets closed on Monday for Memorial Day
    * Spot gold may climb to $1,276 per ounce- technicals
    * Silver hits one-month high

 (Updates prices, adds quote)
    By Vijaykumar Vedala
    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.
    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.   

 (Reporting by Vijaykumar Vedala in Bengaluru; Editing by
Richard Pullin and Amrutha Gayathri)
  

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