October 4, 2017 / 4:20 AM / 17 days ago

PRECIOUS-Gold prices gain on dollar retreat

    * Dollar falls on speculation over next U.S. Fed chair
    * Spot gold may break resistance at $1,279/oz -technicals

 (Adds comment, updates prices)
    By Apeksha Nair
    Oct 4 (Reuters) - Gold prices rose on Wednesday after
marking a 7-week low in the previous session, buoyed as the
dollar pulled back from a 1-1/2-month high against a basket of
currencies. 
    Spot gold        had risen 0.3 percent to $1,275.91 an ounce
by 0648 GMT. It touched its lowest since mid-August at $1,267.76
on Tuesday.
    U.S. gold futures         for December delivery also rose
0.3 percent, to $1,278.60 per ounce.
    "Asian trade on Wednesday saw a modest recovery to bullion
on the back of dollar weakness," MKS PAMP trader Sam Laughlin
said in a note.
    "The yellow metal looks to be settling in for a period of
consolidation around current levels as interest out of Asia
remains muted due to the Chinese holiday period."         
    The dollar on Wednesday shed gains versus the yen        and
against a basket of major currencies        over speculation
that U.S. President Donald Trump's choice for the next Federal
Reserve Chair may be a less hawkish candidate than previously
thought.                    
    "Trump has released the list of new Fed chair candidates and
given that Yellen is on the list, it has given some hopes for
gold traders that after all the Fed's monetary policy stance may
not change if Yellen becomes the chairperson again," said Naeem
Aslam, chief market analyst at Think Markets.
    Meanwhile, world stocks continued to notch up gains, with
Japan's Nikkei         climbing to an over 2-year peak, tracking
a Wall Street rally, as U.S. auto sales grew in September and
optimism over global economic growth picked up.            
    A weaker dollar makes bullion cheaper for holders of other
currencies, while stronger equities imply increased appetite for
risk among investors.
   "Volatility should pick up in North America as we head into a
data-heavy end of the week," said Jeffrey Halley, senior market
analyst at OANDA.
    Spot gold may break resistance at $1,279 and rise into a
zone of $1,287-$1,297 per ounce, said Reuters technicals analyst
Wang Tao.                 
    Among other precious metals, silver        climbed 1 percent
to $16.76 an ounce.
    Platinum        was about 1-percent higher at $915.50 an
ounce, while palladium        climbed 0.7 percent to $921.30 an
ounce. The sister metals, widely used as autocatalysts, hit
price parity for the first time in 16 years last week.

    
 (Reporting by Apeksha Nair and Arpan Varghese in Bengaluru;
Editing by Sonali Paul and Joseph Radford)
  

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below