July 4, 2018 / 4:47 AM / 5 months ago

PRECIOUS-Gold prices touch one-week high on softer U.S. dollar

    * Dollar softer as most global currencies strengthen
    * Asian shares near 9-month low
    * Spot gold may rise to $1,268/oz - technicals
    * SPDR holdings fell 0.73 pct on Tuesday
    * Fed June meeting minutes due Thursday

 (Adds comment, details and updates prices)
    By Karen Rodrigues
    BENGALURU, July 4 (Reuters) - Gold prices rose to a one-week
high on Wednesday, rebounding from a seven-month low touched in
the previous session, as a softer U.S. dollar stoked demand for
the yellow metal. 
    Spot gold        was up 0.6 percent at $1,260.06 an ounce as
of 0712 GMT after touching $1,261.10, a one-week high. 
    The yellow metal has gained over $20 from Tuesday's low of
$1,237.32 an ounce, its weakest since Dec. 12. 
    U.S. gold futures         for August delivery were trading
0.6 percent higher at $1,261.30 an ounce.
    "Modest declines in the U.S. dollar index and equity market
weakness is helping gold," said John Sharma, an economist at
National Australia Bank.
    The dollar index       , which measures the greenback
against a basket of six major currencies, fell 0.3 percent to
94.421.       
    A weaker greenback supports bullion as the dollar-priced
commodity becomes less expensive for investors holding other
currencies. 
    Meanwhile, Asian stocks slipped on Wednesday on heightened
anxieties about Sino-U.S. trade tensions ahead of the deadline
for U.S. tariffs on billions of dollars worth of Chinese
imports.            
    "Since the trade wars have been doing the rounds, if
anything we've seen gold come lower. But if it continues to
escalate gold could go only one way and that's higher," a
Sydney-based trader said. 
    China is putting pressure on the European Union to issue a
strong joint statement against President Donald Trump's trade
policies at a summit later this month but is facing resistance,
European officials said.             
    Gold is often regarded as a safe haven during times of
political and financial uncertainty.
    Spot gold may rise more to $1,268 per ounce, as it has
cleared a resistance at $1,256, Reuters technicals analyst Wang
Tao said.         
    Markets are now awaiting minutes of the June U.S. Federal
Reserve meeting due on Thursday and the U.S. non-farm payrolls
data on Friday for cues on monetary policy.
    Holdings of the world's largest gold-backed exchange-traded
fund, SPDR Gold Shares      , fell 0.73 percent to 803.42 tonnes
on Tuesday.          
    Among other precious metals, silver        was 0.7 percent
higher at $16.13 an ounce and palladium        gained over 1
percent to $950.80 per ounce.
    Platinum        was up 0.1 percent at $837.74 an ounce. The
metal fell on Tuesday to the lowest since December 2008 at $793.
    U.S. markets will remain closed on Wednesday for the
Independence Day holiday.
    

 (Reporting by Karen Rodrigues in Bengaluru; Editing by
Christian Schmollinger and Vyas Mohan)
  
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