November 28, 2016 / 3:26 AM / 3 years ago

PRECIOUS-Gold rises from multi-month lows as dollar weakens

* Spot gold to bounce to $1,210/oz - Technicals
    * SPDR Gold holdings down 0.73 pct on Friday
    * Dollar index down 0.67 pct, pulls back from near 14-yr
highs

 (Adds comment, updates prices)
    By Apeksha Nair
    Nov 28 (Reuters) - Gold rose over 1 percent on Monday,
recovering from 9-1/2 month lows, as the U.S. dollar extended
losses after touching a near 14-year high last week.
    Spot gold had gained 0.92 percent to $1,193.80 an
ounce by 0532 GMT after climbing as high as $1,197.54 earlier in
the session.
    The metal marked its lowest since Feb. 8 at $1,171.21 per
ounce in the previous session.
    U.S. gold futures were up 1.3 percent at $1,193.50
per ounce.
    The dollar index, which measures the greenback
against a basket of currencies, was down 0.67 percent at 100.810
after slipping 0.2 percent in the previous session as U.S.
Treasury yields eased from recent peaks.   
    "The dollar strength has eased somewhat and we may be seeing
some buying interest re-enter the market," ANZ analyst Daniel
Hynes said. 
    "There has been some heavy selling over the past couple of
weeks, so there may be a touch of technical-based buying."
    The metal has fallen about 7 percent so far this month on
the back of a stronger U.S. dollar and surging bond yields as
investors bet that U.S. President-elect Donald Trump's policies
would spur growth and inflation.
    Federal Reserve policymakers appeared confident on the eve
of the presidential election that the economy was strengthening
enough to warrant an interest rate hike, minutes from the Fed's
early November meeting showed.   
    A stronger greenback makes dollar-denominated gold expensive
for holders of other currencies, while higher interest rates
could dent the appeal of non-yielding bullion.
    Gold was riding on dollar weakness and the support for the
yellow metal sits around $1,180 an ounce, while resistance comes
in at $1,200, MKS PAMP Group trader Sam Laughlin said.          
    
    Traders also said supply concerns in China after a directive
from the People's Bank of China to limit gold imports, kept
premiums in Shanghai around $22, driven by buoyant demand.
    Gold premiums in top consumer China jumped to the highest in
nearly three years last week on supply worries. 
    Demand from South East Asia is also quite good and buying at
lower prices could have driven prices higher, said Cameron
Alexander, an analyst with Thomson Reuters-owned metals
consultancy GFMS. 
    SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.73 percent to
885.04 tonnes on Friday. 
    Spot gold is expected to bounce to resistance at
$1,210 per ounce as it has found support at $1,172, according to
 Reuters technical analyst Wang Tao. 
    Among other precious metals, silver gained nearly 2
percent to $16.81 an ounce and palladium rose 0.2 percent
to $742.50. Platinum was up 1.73 percent at $918.60.

 (Reporting by Apeksha Nair in Bengaluru; additional reporting
by Nallur Sethuraman; Editing by Richard Pullin and Subhranshu
Sahu)
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