July 3, 2018 / 4:34 AM / 5 months ago

PRECIOUS-Gold recovers from 7-month low as dollar eases

    * Support for gold comes in at $1,236/oz - MKS trader
    * Trade war concerns weigh on Asian stocks

 (Recasts, adds comments, and updates prices)
    By Karen Rodrigues
    BENGALURU, July 3 (Reuters) - Gold prices recovered from a
nearly seven-month low on Tuesday as dollar eased and Asian
shares sank amid heightening trade friction between the United
States and major economies. 
    Spot gold        was up 0.3 percent at $1,244.72 an ounce,
as of 0843 GMT. Earlier in the session, bullion prices dropped
to $1,237.32, their lowest since Dec. 12, 2017.  
    U.S. gold futures         rose 0.3 percent to $1,245.80 an
ounce.
    "While the greenback is slightly weaker today, there is a
suspicion that the technical breakdown below the $1,246 support
level encouraged bears to drive prices lower," said Lukman
Otunuga, research analyst, FXTM.
    The dollar index       , which measures the greenback
against a basket of six major currencies, was 0.4 percent lower
at 94.650, as of 0840 GMT. 
    A softer greenback generally decreases the cost of
dollar-denominated bullion for investors paying in other
currencies. 
    Meanwhile, Asian shares hit a nine-month low on Tuesday on
rising fears over tense trade relations between the United
States and major economies, as Chinese markets saw another rocky
day. The United States is set to place tariffs on $34 billion
worth of Chinese goods on July 6.            
    The U.S. Chamber of Commerce on Monday denounced U.S.
President Donald Trump's handling of global trade disputes,
issuing a report that argued tariffs imposed by Washington and
retaliation by its partners would boomerang badly on the
American economy.             
    Gold prices can gain during times of uncertainty as it is
seen as a safe place to park assets.
    Key for the yellow metal would be support at $1,236, while
resistance cuts in through $1,245 - $1,250, MKS PAMP Group
trader Sam Laughlin said in a note.
    In other precious metals, silver        climbed 0.5 percent
to $15.91 an ounce, while palladium        dropped 0.2 percent
to $942 per ounce.
    Platinum        slipped 0.2 percent to $814.30 an ounce.
Earlier in the session, it fell to the lowest since December
2008 at $793.
    Autocatalyst metal platinum tumbled as the greenback
strengthened, an intensifying U.S.-European Union trade spat
pressured precious metals, and political risk in Germany
weighed.             

 (Reporting by Karen Rodrigues and Apeksha Nair in Bengaluru;
Editing by Christian Schmollinger and Sherry Jacob-Phillips)
  
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