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PRECIOUS-Gold edges up towards one-month high as economic fears remain
October 20, 2014 / 3:51 AM / 3 years ago

PRECIOUS-Gold edges up towards one-month high as economic fears remain

* Gold ticks up after two straight sessions of losses
    * U.S. data on consumer sentiment, housing starts supports
equities

 (Updates prices)
    By A. Ananthalakshmi
    SINGAPORE, Oct 20 (Reuters) - Gold edged up on Monday
towards a one-month high, recovering from earlier losses, as
concerns about a slowdown in the global economy persisted
despite strong U.S. data.
    Spot gold edged up 0.2 percent to $1,240.40 an ounce
by 0701 GMT after earlier falling 0.3 percent. The metal has
gained nearly 4 percent in the past two weeks and hit a
one-month high of $1,249.30 on Wednesday. 
    Japanese stocks led a rally in Asia on Monday, after solid
U.S. data and earnings calmed tumult in global financial
markets, while the dollar also gained in strength against a
basket of major currencies. 
    "Global equities look to have recovered from last week's
selloff with strong gains being posted late in the week to put
downward pressure on the precious metals," said MKS Group's
metals dealer Sam Laughlin. 
    "We are expecting $1,250 to form a strong resistance to any
move higher in gold, while $1,220-$1,225 should support the
yellow metal in the short term," said Laughlin, adding that any
further improvements to the global macro climate may see gold
drop towards $1,200. 
    Markets took some comfort from Friday's U.S. data that
showed the Thomson Reuters/University of Michigan index of
consumer sentiment unexpectedly rose in early October to its
highest level since July 2007, while groundbreaking for new
homes rose more than expected last month. 
    That data reassured investors, who had been worried about
the global economy and its impact on U.S. monetary policy, and a
resurgent European debt crisis.
    Gold, along with other safe-haven assets such as bonds and
the Japanese yen, had benefited over the past two weeks as
investors sought safety from riskier equities. 
    But the worries over the health of the global economy have
not been completely removed and markets will still be closely
watching economic data.
    Hedge funds and money managers increased their bullish
futures and option bets in gold in the week up to Oct. 14 after
eight consecutive weekly declines, the Commodity Futures Trading
Commission said on Friday. 
    SPDR Gold Trust, the world's top bullion-backed
exchange traded fund, has also been seen an uptick in
investments.     
    Among other precious metals, platinum and palladium
 continued to recover from recent losses, gaining nearly 1
percent on Monday.     
    
    PRICES AT 0701 GMT
 Metal            Last       Change    Pct chg
                                       
 Spot gold           1240.4      2.71     0.22
 Spot silver          17.36      0.13     0.75
 Spot platinum      1265.24     11.94     0.95
 Spot palladium      755.97      5.07     0.68
 Comex gold          1240.9       1.9     0.15
 Comex silver         17.39     0.059     0.34
 Euro                1.2736                   
 DXY                 85.336                   
                                       
 COMEX gold and silver contracts show the most
 active months
 
 (Editing by Joseph Radford, Muralikumar Anantharaman and
Subhranshu Sahu)

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