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PRECIOUS-Gold rebounds as dollar sags, U.S. healthcare vote postponed
June 27, 2017 / 7:42 PM / 5 months ago

PRECIOUS-Gold rebounds as dollar sags, U.S. healthcare vote postponed

 (Updates prices; adds comment, second byline, NEW YORK
dateline)
    * U.S. Senate postpones planned healthcare vote
    * Fed's Yellen says sticks to gradual rate hike plan
    * Platinum recovers from six-week lows reached on Monday

    By Marcy Nicholson and Maytaal Angel
    NEW YORK/LONDON, June 27 (Reuters) - Gold rose on Tuesday
after hitting a six-week low in the previous session as bargain
hunting set in and the dollar slid sharply after the U.S. Senate
postponed a planned healthcare vote.
    U.S. Federal Reserve Chair Janet Yellen said she was
sticking to the plan to raise interest rates gradually and that
inflation has continued to run below the Fed's objectives.
            
    The U.S. dollar index        fell 1 percent and Wall Street
dropped further, after a vote on healthcare legislation was
delayed in the U.S. Senate, according to a Senate aide.
                 
    Spot gold        rose 0.5 percent to $1,249.51 per ounce by
3:28 p.m. EDT (1928 GMT). It slumped to a six-week low of
$1,236.46 on Monday.    
    U.S. gold futures         for August settled up 0.04 percent
at $1,246.90.
    "Maybe gold was anticipating a much harder stance from
Yellen and that's why we're rallying slightly rather than
continuing the sell off," said Phillip Streible, senior
commodities broker for RJO Futures in Chicago.
    "The dollar's so weak, that also is lending some support on
the gold market. Gold still likes that level of $1,250. That's
the pivot point right there."
    A huge sell order totaling 1.85 million ounces pushed gold
to a six-week low on Monday, although the precious metal
ultimately failed to break below the 200-day moving average.
    "If yesterday gold wasn't able to push below the 200-day
moving average that's a positive sign," said ABN Amro analyst
Georgette Boele.
    "The market is skeptical about Fed rate rises this year and
next. Overall we're optimistic about the outlook for gold, we
(see) a weaker dollar later in the year," she added.  
    The dollar was already weak against the euro        after
the European Central Bank president said he might begin to
reduce the Bank's emergency economic stimulus.             
    A weak dollar makes dollar-priced gold cheaper for non-U.S.
investors.       
    Gold prices have gained every month this year save June, due
partly to geopolitical tensions which most recently included
Syrian hostilities, a bailout of Italian banks, the policies of
U.S. President Donald Trump and Britain's negotiations to quit
the European Union.
    "The gold market is seeing a bit of a bid right now. Growing
tensions in the Middle East may be playing a part," said INTL
FCStone's Ed Meir in a note. 
    Among other precious metals, silver        rose 0.8 percent
to $16.69 an ounce, while palladium        fell 0.6 percent to 
$860 per ounce.
    Platinum        rose 0.8 percent to $919.45, recovering from
Monday's six-week trough.             

 (Additional reporting by Nithin Prasad and Vijaykumar Vedala in
Bengaluru; Editing by Marguerita Choy and David Evans)
  

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