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PRECIOUS-Gold eases ahead of Jackson Hole central bankers meet
August 24, 2017 / 4:18 AM / 4 months ago

PRECIOUS-Gold eases ahead of Jackson Hole central bankers meet

    * Spot gold may test resistance at $1,294/oz - technicals
    * Investors await speeches by Yellen, Draghi
    * Dollar regains some footing

 (Adds comment, updates prices)
    By Apeksha Nair
    BENGALURU, Aug 24 (Reuters) - Gold nudged lower on Thursday,
giving up some of its gains made after U.S. President Donald
Trump's threat of a government shutdown, with investors
remaining focused on a major central bankers conference in
Jackson Hole.
    Spot gold        was down 0.2 percent at $1,287.21 an ounce,
as of 0700 GMT, after gaining 0.4 percent in the previous
session.
    U.S. gold futures         for December delivery slipped 0.2
percent to $1,292.40 per ounce.
    "It's a bit lower with lack of catalysts and people trading
sideways. It's going to be trading in a very tight range," said
Richard Xu, a fund manager at China's biggest gold
exchange-traded fund, HuaAn Gold.
    "The market is pricing in the Federal Reserve's actions at
the Jackson Hole meeting and people are expecting some kind of
tightening going on in that space. So that's why gold is going
to be under some kind of pressure."     
    Markets were focused on an annual meeting of central bankers
in Jackson Hole, Wyoming, starting on Thursday, where Federal
Reserve Chair Janet Yellen and European Central Bank chief Mario
Draghi are set to deliver speeches on Friday, on the outlook for
monetary policy and interest rates.
     ECB's Draghi on Wednesday warned against hasty policy
responses and said gaps in understanding the workings of new
policies remain.             
     Gold is highly sensitive to rising U.S. interest rates, as
these increase the opportunity cost of holding non-yielding
bullion, while boosting the dollar, in which it is priced.
     The dollar edged higher against the yen on Thursday, paring
some of the losses it suffered after U.S. President Donald Trump
suggested a shutdown of the government was possible and
threatened to terminate the North American Free Trade
Agreement.                                 
    "This entire situation would continue to help gold in the
short and longer term. The big upward push for the gold price
which we are not seeing is because of the possibility of some
unexpected hawkish comments by Janet Yellen during her upcoming
speech," said Naeem Aslam, chief market analyst, Think Markets. 
    Spot gold may test a resistance at $1,294 per ounce, a break
above which could lead to a gain to the next resistance at
$1,297, Reuters technical analyst Wang Tao said.             
    Among other precious metals, silver        was nearly
unchanged at $17.00 an ounce, while platinum        edged 0.3
percent lower to $973.30 an ounce.
    Palladium        fell 0.5 percent to $928.00 per ounce.
    

 (Reporting by Apeksha Nair in Bengaluru; Editing by Richard
Pullin and Sherry Jacob-Phillips)
  

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