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PRECIOUS-Gold set for worst week in seven as investors opt for riskier assets
April 28, 2017 / 4:18 AM / 6 months ago

PRECIOUS-Gold set for worst week in seven as investors opt for riskier assets

    * Gold, however, is up over 1 pct in April
    * SPDR Gold holdings down 6 tonnes since Tuesday
    * Silver set for worst month since November
    * Palladium hits highest since March 2015

 (Updates prices)
    By Swati Verma
    BENGALURU, April 28 (Reuters) - Gold was little changed on
Friday and poised for the biggest weekly fall in seven as
investors sought out higher returns than those from holding the
non-interest bearing yellow metal by buying into riskier assets.
    Spot gold        was up 0.1 percent at $1,264.86 per ounce
as of 0750 GMT, and U.S. gold futures         were also up 0.1
percent at $1,266.80.
    Gold is on track for a weekly drop of about 1.5 percent, the
biggest weekly percentage fall since the week of March 10, but
is heading towards a gain of about 1.3 percent for the month.
    "Technically gold has not had a great week ... there seems
to be some pressure as the risk-on sentiment is still on despite
Trump's tax plans disappointing and especially situation in
North Korea does not seem to be inflamed," a Hong-Kong based
trader said.
    On Wednesday, President Donald Trump proposed deep U.S. tax
cuts, mainly for businesses, that would make the federal deficit
balloon if enacted, drawing a cautious welcome from fiscal
conservatives and financial markets.             
    "People are pulling out of gold and moving to risky assets
like shares and currencies to make profits," said Brian Lan,
managing director at gold dealer GoldSilver Central in
Singapore.
    Asian stocks looked set to close a strong week on a positive
note, with MSCI's broadest index of Asia-Pacific shares outside
Japan                 on track to end the week up 1.7 percent,
which would be its best week in six.            
    "At the moment there are not any major events until the
second round of French elections (on May 7), so they are looking
at other ways to get more returns," said Lan.
    Holdings of the SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, fell 0.1 percent to 853.36
tonnes on Thursday. Holdings have fallen over 6 tonnes since
Tuesday.          
    "People are probably going to buy gold around $1,250 and
sell it around $1,280. There is nothing on the news to
aggressively buy gold at this point of time," the Hong-Kong
based trader added.
    Silver        was up 0.6 percent at $17.32 an ounce, after
touching a 1-1/2-month low of $17.19 in the previous session.
    Silver was on track to end the week down over 3 percent, and
was headed for the worst month since November.
    Platinum        gained 0.4 percent at $943.65 an ounce and
was heading towards its worst week in seven.
    Palladium        was steady at $815 after hitting $817.55 an
ounce, the highest since March 2015. It was the only weekly
gainer among the precious metals, set for a 3 percent rise this
week.

 (Reporting by Swati Verma and Nallur Sethuraman in Bengaluru;
Editing by Christian Schmollinger and Subhranshu Sahu)
  

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