November 30, 2017 / 5:21 AM / 2 years ago

PRECIOUS-Gold hits one-week low as positive U.S. data weighs

    * Spot gold heading for first monthly gain since August
    * Gold in narrowest range in 12 years -
    * Silver falls to eight-week low at $16.47/oz

 (Updates prices, recasts first graph)
    By Vijaykumar Vedala
    Nov 30 (Reuters) - Gold inched down to a one-week low on
Thursday, pressured by upbeat U.S. growth data and Federal
Reserve chair Janet Yellen's bullish view of the economy, but
the yellow metal was on track for its first monthly gain since
    A lack of clear drivers has kept gold between $1,265 and
$1,300 an ounce throughout November, its narrowest monthly range
in 12 years.    
    Despite the volatility overnight, it was another subdued
session across the precious complex today in Asia, with gold
struggling above $1,285 an ounce consistently, MKS analyst Alex
Thorndike said in a note.   
    Spot gold        was down 0.1 percent at $1,281.92 an ounce
at 0813 GMT, having touched its lowest since Nov. 22 at
$1,281.31 earlier in the session. However, the metal has risen
0.9 percent for the month so far.
    U.S. gold futures         were down 0.1 percent at
    "We see gold prices remaining subdued over the next two
months but after that it will start to rise," said Richard Xu, a
fund manager at China's biggest gold exchange-traded fund, HuaAn
    "It would be flat for a few days because the economy is
great and the financial markets are in sync with inflation." 
    The U.S. economy has gathered steam this year and will
warrant continued interest rate increases amid a strengthened
global recovery, Yellen told Congressional leaders on Wednesday
in her final scheduled testimony on Capitol Hill.             
    Higher U.S. interest rates would keep pressure on gold
prices as investors seek returns in assets other than
non-interest bearing bullion. 
    Data showed the U.S. economy grew faster than initially
thought in the third quarter, notching its quickest pace in
three years.             
    Spot gold        may break a support at $1,281 per ounce and
fall more towards the next support at $1,277, according to
Reuters technical analyst Wang Tao.             
    "While we remain cautious on it (gold prices) over three
months, we regard setbacks as opportunities to add exposure,"
UBS analysts said in a note, while raising their 12-month
forecast from $1,250 an ounce to $1,325 an ounce. 
    "In the past, early stages of monetary policy normalization
hurt gold; but this time such adjustments resemble baby steps
and likely will only be undertaken in sync with rising
inflation," they said.
    In other markets, the dollar index       , which gauges the
greenback against a basket of six major rivals, was up 0.1
percent as investors kept an eye on the progress of the U.S. tax
reform legislation that could see a likely decisive vote later
this week.             
    Silver        touched an eight-week low of $16.47 an ounce
and was last down 0.1 percent at $16.51.
    Palladium        gained 0.4 percent at $1,017.0 an ounce,
while platinum        rose 0.7 percent at $943.30.
    In November, palladium has gained nearly 4 percent and
platinum 3 percent, while silver is down over 1 percent.  

 (Reporting by Vijaykumar Vedala in Bengaluru; Editing by
Christian Schmollinger and Vyas Mohan)
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