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PRECIOUS-Gold slips on stronger dollar; geopolitical risks support
August 30, 2017 / 4:34 AM / 23 days ago

PRECIOUS-Gold slips on stronger dollar; geopolitical risks support

    * Spot gold likely to retest resistance at $1,326/oz
-technicals
    * Palladium off 16-yr peak hit in previous session
    * Dollar bounces back from 2-1/2-year low

 (Recasts, adds comment and updates prices)
    By Arpan Varghese
    BENGALURU, Aug 30 (Reuters) - Gold slipped on Wednesday,
pressured by gains in the dollar amid perception of a brief lull
in tensions over North Korea, but prices of the yellow metal
remained supported as safe-haven demand was buoyed by
expectations that geopolitical risks could persist.
    "The dollar strength is taking some shine off the yellow
metal," said Naeem Aslam, chief market analyst, Think Markets. 
    "The $1,300 mark for gold is a line in the sand."
    Spot gold        was down 0.1 percent at $1,307.60 per ounce
as of 0701 GMT. It hit an over nine-month peak on Tuesday at
$1,325.94.
    U.S. gold futures         slipped 0.4 percent to $1,313.20.
    The dollar rebounded from a 2-1/2-year low on Wednesday, and
Asian stocks took cue from Wall Street's stronger close, as
concerns about North Korea's firing of a missile over Japan
ebbed.                   
    North Korea said on Wednesday it had conducted a test of an
intermediate-range ballistic missile (IRBM) to counter U.S. and
South Korean military drills.             
    The United States will not allow North Korea's lawlessness
to continue and it is time for Pyongyang to recognise the
"danger they are putting themselves in" as the world is united
against them, U.S. Ambassador to the United Nations Nikki Haley
said on Tuesday.             
    "A lot of people are still seeing gold as a safe haven
because we have not heard much in terms of reactions of the
different countries to North Korea's action," said Brian Lan,
managing director at dealer GoldSilver Central in Singapore.
    Geopolitical risks can boost demand for safe-haven assets
such as gold, considered a good store of value during volatility
in other markets. 
    "Do we think that the geopolitical issue will intensify? No,
we don't, but we cannot rule it out either," said Dominic
Schnider at UBS Wealth Management in Hong Kong. 
    "Looking at how things are spiralling, the risk is that
these tensions linger on."
    Spot gold is expected to retest a resistance level at $1,326
per ounce, said Reuters technical analyst Wang Tao.             
    In other precious metals, silver        fell 0.1 percent to
$17.33 per ounce, trading below its more than two-month peak of
$17.67 touched on Tuesday.
    Platinum        also eased by 0.1 percent to $991.15 per
ounce. In the previous session, the metal hit its highest since
early March at $1,006.30. 
    Palladium        was mostly unchanged at $943.00 per ounce.
It hit its highest in more than 16 years in the previous session
at $949.10 an ounce.

 (Reporting by Arpan Varghese in BENGALURU; Editing by Tom Hogue
and Subhranshu Sahu)
  

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