* Investors shifting away from riskier assets
* Spot gold may test resistance at $1,261.03 -technicals
* Silver off 1-mth high touched in previous session
(Adds comment, updates prices)
By Sethuraman N R
April 5 Gold prices held steady on Wednesday
near one-month highs hit the session before, with appetite for
riskier assets easing ahead of a meeting between leaders of the
United States and China.
Focus is also turning towards the release later in the day
of the minutes from the Federal Reserve's March meeting, with
investors looking for any clues on the pace of further U.S.
interest rate rises.
Spot gold had edged up 0.1 percent to $1,256.38 per
ounce by 0744 GMT. U.S. gold futures gained 0.1 percent
Spot gold on Tuesday hit its highest since Feb. 27 at
$1,261.15, but failed to close above its 200-day moving average
for the third time this year.
"This marks its third failure to break this level this year
... What is becoming clear is that gold’s direction is being set
by the general U.S. dollar direction and not by gold in
isolation," said Jeffrey Halley, senior market analyst at OANDA.
The dollar index fell 0.1 percent to 100.470.
"Whether the Federal Reserve would raise rates in its June
conference is not very certain. The market is waiting for more
economic indicators from the U.S and speeches from Fed officials
to assess the probability of a rate hike in June," said Jiang
Shu, chief analyst at Shandong Gold Group.
The Fed raised interest rates in March and has indicated at
least two more hikes this year.
Gold prices, however, have only risen nearly $60 since the
rate hike in March as worries over U.S. President Donald Trump's
polices and elections in Europe have increased the metal's
North Korea fired a ballistic missile on Wednesday from its
east coast into the sea off the Peninsula, South Korea's
military said, ahead of the summit between the United States and
U.S. President Donald Trump meets Chinese President Xi
Jinping on Thursday and Friday.
Asian stocks rose on Wednesday though the underlying
sentiment was still cautious, with investors wary of taking big
positions ahead of the meeting.
"The markets are waiting for the conference between the most
important leaders in the world ... If it does not turn out in a
positive way, we might see a weak U.S. dollar and rising gold
price," Shu said.
Spot gold may retest resistance at $1,261.03 per ounce, as
suggested by its wave pattern and a Fibonacci retracement
analysis, Reuters technical analyst Wang Tao said.
Spot silver climbed 0.1 percent to $18.30 an ounce
after touching a one-month peak of $18.41 in the previous
Platinum advanced 0.8 percent to $966.60, while
palladium edged up 0.1 percent to $805.35.
(Reporting By Nallur Sethuraman in Bengaluru; Editing by Vyas
Mohan and Joseph Radford)