November 13, 2018 / 5:00 PM / 5 months ago

PRECIOUS-Gold climbs back above $1,200/oz as dollar rally pauses

    * Silver touches lowest since Sept. 11
    * GRAPHIC-2018 asset returns:

 (Updates prices)
    BANGALURU, Nov 13 (Reuters) - Gold shook off earlier losses
on Tuesday to move back above the key $1,200-per-ounce level,
benefiting from a slight retreat in the dollar after a rally
driven by the U.S. interest rate outlook and Brexit talks.
    Spot gold        edged up 0.1 percent at $1,201.15 per ounce
at 1:30 p.m. EST (1830 GMT), having earlier touched its lowest
since Oct. 11 at $1,195.90. 
    U.S. gold futures         settled $2.10 lower, or 0.17
percent, at $1,201.40.
    Bullion rose on Tuesday after seven consecutive losing
sessions, supported by limited buying on the dips from
price-sensitive customers.
    "The weaker dollar is supporting gold and a lot of people
are willing to purchase the metal below $1,200," said Phil
Streible, senior commodities strategist at RJO Futures in
    The dollar index       , a measure of the greenback's
performance against a basket of major currencies, eased 0.4
percent, having hit its highest since June 2017 in the previous
session, making gold less expensive for holders of other
    The dollar has benefited over the last week from
expectations for further U.S. interest rate hikes, as well as
concerns over Italy's budget and ongoing Brexit talks.
    Gold has shed some $50 over two weeks on the back of a
rising U.S. dollar. The yellow metal has fallen about 12 percent
since hitting a peak in April as investors bought the dollar as
the U.S.-China trade war unfolded against a background of higher
U.S. interest rates.
    "There has been a bit of physical demand around the $1,200
levels," said David Meger, director of metals trading at High
Ridge Futures. "The continued weight on the gold market of late
has been due to the slowly rising interest rate environment."
    Bullion had traded between $1,211 and $1,243 an ounce for
much of the last month before dipping sharply over the last two
    "Gold's fall has done a lot of technical damage so the
bounce we see could be short-lived," said Fawad Razaqzada, an
analyst with
     Meanwhile, holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust      , rose 0.90 percent
to 762.0 tonnes on Monday. Holdings last month hit their lowest
since early 2016 after declining over the summer.             
    Silver        rose 0.3 percent to $14.00 per ounce, having
touched an over two-month low of $13.92 earlier in the session.
    Palladium        climbed 154 percent to $1,112.20 per ounce,
while platinum        fell 0.3 percent to $837.80 an ounce.

 (Reporting by Nallur Sethuraman, Swati Verma, Sumita Layek and
Arpan Varghese in Bengaluru)
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