November 15, 2018 / 11:33 AM / 6 months ago

PRECIOUS-Gold holds ground as dollar gains on Brexit turmoil

    * Silver moves up from multi-year lows of previous session
    * Further gains likely if gold holds above $1,210 - analyst

 (Updates prices and adds comments)
    By Sumita Layek
    BENGALURU, Nov 15 (Reuters) - Gold held steady on Thursday
as opposition within Britain's Conservative Party to a draft EU
exit deal hit sterling and lifted the dollar              ,
making bullion less attractive for holders of other currencies. 
    Spot gold       ,, which rose 1 percent in the previous
session, was little changed at $1,211.19 per ounce at 1350 GMT,
while U.S. gold futures         were up 0.1 percent at $1,211.60
per ounce.
    Some safe haven demand flowed into gold, a traditional store
of value during times of political and economic uncertainty, as
stock markets declined.            
    "There hasn't been any big geopolitical crisis... it is
still a relatively mild kind of environment and from this point
of view, you are better off in the U.S. dollar," SP Angel
analyst Sergey Raevskiy said.
    Just over 12 hours after British Prime Minister Theresa May
said that her top ministers had agreed to the draft deal, Brexit
Minister Dominic Raab and Work and Pensions Minister Esther
McVey quit, saying they could not support it.             
    "Gold may be seeing some limited safe-haven buying interest
from this matter. However, the situation is not a serious
geopolitical factor for the world marketplace," Kitco Metals
senior analyst Jim Wyckoff said in a note.
    The dollar has emerged as a dominant safe haven asset this
year, denting appeal for gold, which has fallen 11 percent from
an April peak, especially as the U.S.- China trade tussle played
out against a backdrop of rising U.S. interest rates.
    U.S. consumer prices increased by the most in nine months in
October amid gains in the cost of gasoline and rents, pointing
to steadily rising inflation that will likely keep the Federal
Reserve on track to raise rates again next month.             
    In the latest developments surrounding the ongoing trade
dispute, U.S. President Donald Trump is expected to meet Chinese
President Xi Jinping at a G20 summit in Argentina this month.
    "If prices manage to remain above $1,210 there will be space
for further recoveries, while another fall below the
psychological threshold of $1,200 would represent a negative
signal," ActivTrades chief analyst Carlo Alberto De Casa said.
    Also indicative of improved appetite for gold, holdings of
the world's largest gold-backed exchange-traded fund, SPDR Gold
Trust      , remained near their highest level in more than two
months, while central banks have also been gradually increasing
their reserves of the metal, analysts said.             
    Among other precious metals, silver        was up 0.1
percent at $14.14 per ounce. The metal fell to $13.85 in the
previous session, a level last seen on Jan. 21, 2016.
    Platinum        fell 0.7 percent to $828.74 an ounce, while
palladium        was 0.2 percent higher at $1,126.00 per ounce.

 (Reporting by Sumita Layek and Arpan Varghese in Bengaluru;
editing by David Evans and Alexander Smith)
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