April 4, 2017 / 3:51 AM / 4 months ago

PRECIOUS-Gold rises to 1-wk high on weaker dollar, geopolitical worries

3 Min Read

    * SPDR Gold holdings rise 0.53 percent on Monday
    * Platinum hits one-week high
    * Silver rises to over 1-month high

 (Adds quote, updates prices)
    By Sethuraman N R
    April 4 (Reuters) - Gold prices hit one-week highs on
Tuesday, buoyed by a weaker dollar on tepid economic data from
the United States and as investors turned to safe-haven assets
on worries over geopolitical tensions. 
    Spot gold        had risen 0.4 percent to $1,257.73 per
ounce at 0658 GMT, while U.S. gold futures         were up 0.5
percent at $1,259.9.
    Spot gold hit its highest since March 28 at $1,257.97.
    A measure of U.S. manufacturing activity retreated from a
2-1/2 year high in March amid a decline in production and an
inventory drawdown.             
    "The data overnight gave some joy to gold investors.
Weaker-than-expected numbers are supporting the view that the
U.S. Federal Reserve is not going to raise rates more than a
couple of times this year," ANZ analyst Daniel Hynes said.
    Investor appetite for risk has been dulled this week by a
number of factors, such as caution ahead of the upcoming meeting
between U.S. President Donald trump and Chinese President Xi
Jinping and a suspected suicide bombing in St. Petersburg,
Russia.             
    "The critical uncertainty has been a big feature of buying
in the gold markets and events overnight in Russia just
emboldened the view and is continuing to support safe-haven
buying," Hynes added.
    "The market is starting to position itself for a potential
break higher ... Net long positions in gold have started to peak
again and investors are a little more bullish about the
outlook."
    Hedge funds and money managers raised their net long
position in COMEX gold by 33,179 to 99,150 lots in the week to
March 28, the highest in more than three weeks.             
    Holdings of SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, climbed 0.53 percent to 836.77
tonnes on Monday from 832.32 tonnes on Friday.          
    The dollar extended overnight losses and was down 0.4
percent at 110.40 yen        after hitting 110.32, its lowest in
a week.
    "The U.S. dollar continued to trade offered throughout the
Asian session, providing underlying support to (gold) prices,"
MKS PAMP Group trader Sam Laughlin said.
    "Gold is once again running up against the 200 day-moving
average around $1,258 and will target a sustained move through
the recent high of $1,262 - $1,265 to recommence the uptrend
from the December low."
    A stronger greenback makes dollar-denominated gold more
expensive for holders of other currencies. 
    Spot silver        rose 0.4 percent to $18.30. The metal hit
an over one-month high of $18.35.
    Platinum        rose 0.1 percent to $952.74. It earlier
touched a one-week high of $960.40.
    Palladium        fell 0.1 percent to $801.70.

 (Reporting by Nallur Sethuraman in Bengaluru; Editing by Joseph
Radford)
  

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