August 8, 2017 / 4:47 AM / 7 months ago

PRECIOUS-Gold rises as dollar eases, focus on U.S. inflation data

    * Investors hope for clues on pace of U.S. monetary
    * Spot gold may retest support at $1,255/oz - technicals
    * SPDR Gold Trust holdings fell to 786.87 tonnes on Monday
    * Platinum hovers near 3-month high hit last week

 (Updates prices)
    By Nithin ThomasPrasad
    BENGALURU, Aug 8 (Reuters) - Gold prices edged up on Tuesday
as the dollar eased slightly, with investors waiting for U.S.
inflation numbers later this week for hints on the pace of
monetary tightening by the Federal Reserve.
    "Gold appears to be in a holding pattern with the increasing
risk that stale long positioning may see traders head for the
door until some directional clarity is restored," said Jeffrey
Halley, senior market analyst at OANDA.
    Spot gold        was up 0.2 percent at $1,259.41 per ounce,
as of 0705 GMT.    
    U.S. gold futures         for December delivery rose 0.1
percent to $1,265.40 per ounce.
    "There aren't many players in the market, nor is there much
incentive (for prices) to move right now, so I think it's going
to be very quiet for the rest of the month," said Yuichi
Ikemizu, Tokyo branch manager at ICBC Standard Bank.
    "I expect prices to creep higher (in the short term) as the
dollar is still weak and that is the prevailing trend."
    Asian shares went flat on Tuesday as disappointing Chinese
trade data clouded the otherwise upbeat outlook on global
growth, leaving currencies and commodities becalmed in summer
    The U.S. dollar inched down, not far from multi-month lows
touched last week, as investors awaited data due later this week
that will offer clues about the extent to which the
strengthening labour market is spilling over into inflation.   
    The dollar index, which tracks the greenback against a
basket of six major rivals, slipped slightly on the day to
93.333. A weaker dollar makes bullion cheaper for non-U.S.
    Spot gold        may retest support at $1,255 per ounce, a
break below which could cause a further loss to the next support
level at $1,247, said Reuters technical analyst Wang Tao.
    "Given the move towards tighter monetary policy ... the
developing bullish chart picture may be a warning that investors
are buying more gold as an insurance against heightened risk of
trouble ahead," ScotiaBank analysts said in a note.
    Meanwhile, holdings at the SPDR Gold Trust      , the
world's largest gold-backed exchange-traded fund, fell to 786.87
tonnes on Monday.                 
    In other precious metals, silver        rose 0.1 percent to
$16.26 per ounce. In the previous session, it retouched its July
20 low of $16.10 an ounce, the weakest since July 18. 
    Platinum        gained 0.5 percent to $968.20 per ounce. It
hovered close to an over three-month high of $970.10 hit on
    Palladium        inched 0.2 percent higher to $887.75 per
ounce, after touching its highest in over a week in the previous
    "Platinum is being supported by strong fundamentals as
supply in comparison to the demand is a little weak," said
ICBC's Ikemizu.   

 (Reporting by Nithin Prasad and Arpan Varghese in Bengaluru;
Editing by Joseph Radford and Sherry Jacob-Phillips)
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