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PRECIOUS-Gold pares gains from 5-month high despite geopolitical risks
April 17, 2017 / 3:25 AM / 7 months ago

PRECIOUS-Gold pares gains from 5-month high despite geopolitical risks

    * Gold rallied earlier to 5-month high on safe-haven appeal
    * Spot silver falls from 5-month peak
    * Platinum above 200-day moving average at 6-week top

 (Recasts, updates prices, adds comment)
    By Marcy Nicholson and Sethuraman N R
    NEW YORK/BENGALURU, April 17 (Reuters) - Gold pared gains
from a five-month high on Monday, losing steam as U.S. Treasury
yields turned higher and the dollar came off its lows, after
rising geopolitical tensions over North Korea spurred earlier
safe-haven buying in bullion.
    Spot gold        was up 0.05 percent at $1,285.86 an ounce
by 2:43 p.m. EDT (1843 GMT), after hitting its highest since
early November at $1,295.42.
    The yellow metal gave up most of its gains as the dollar
came off a five-month trough against the yen        hit earlier
in the day, and 10-year U.S. Treasury yields < US10YT=RR> turned
higher after falling to their lowest level since November.
    U.S. stocks rose after three straight days of losses.
    Phillip Streible, senior commodities broker for RJO Futures
in Chicago, said gold prices also pared gains on profit taking.
    "The Fed is still going to raise rates. The cloud lingers
over gold," Streible said.
    The most active U.S. gold         futures for June delivery
settled up 0.3 percent at $1,291.90.
    North Korea on Sunday made what was believed to be a failed
missile test launch, increasing geopolitical risks. Regional
tensions have risen over the past weeks as U.S. President Donald
Trump has taken a tough rhetorical line with Pyongyang.
    "Gold will likely retain a measure of strength heading into
the French elections in about one week's time, while ongoing
tensions in North Korea should also keep the markets rather
nervous," said INTL FCStone analyst Edward Meir.
    With the first round of France's presidential election on
April 23, an unpredictable outcome is pushing some pollsters to
calculate the most extreme runoff scenarios.             
    Meanwhile, uncertainties over Trump's policy toward North
Korea have been growing.
    The bullish sentiment in gold was underscored by data 
showing speculators increased their net long positions for a
fourth straight week to April 11.             
    The Atlanta and New York Federal Reserve banks downgraded
their outlook for U.S. economic growth for the first quarter
after disappointing data on retail sales and consumer prices in
    "As (gold) didn't manage to get through $1,300 and due to
light volumes during (holiday-related) European hours, gold
consolidated until weaker U.S. economic data gave the yellow
metal another push," said Giovanni Staunovo, commodity analyst
for UBS Wealth Management.
    Spot silver        turned down 0.4 percent to $18.445 an
ounce after touching a five-month high of $18.649.
    Platinum        was up 1.5 percent at $986.10 an ounce after
rallying above its 200-day and 50-day moving averages to a
six-week high at $990.10. Spot palladium        dropped 0.7
percent to $789.40.

 (Editing by Meredith Mazzilli and Tom Brown)

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