June 27, 2017 / 10:38 AM / a month ago

REFILE-PRECIOUS-Gold rebounds from 6-week low as dollar sags before Fed speeches

3 Min Read

 (Removes extraneous word "gave" from paragraph 2)
    * Market sceptical of Fed's hawkish message
    * Yellen, Harker due to speak in London on Tuesday
    * Platinum recovers from six-week lows reached on Monday

    By Maytaal Angel
    LONDON, June 27 (Reuters) - Gold rose on Tuesday after
hitting a six-week low in the previous session as bargain
hunting set in and the dollar slid sharply before speeches by
U.S. Federal Reserve officials.
    Fed officials have signalled that they plan to continue on
their current trajectory of interest rate hikes despite a slow
down in inflation. But softer-than-expected U.S. data has given 
rise to some caution.                   
    A huge sell order totalling 1.85 million ounces pushed gold
to a six-week low on Monday, although the precious metal
ultimately failed to break below the 200-day moving average.    
    "If yesterday gold wasn't able to push below the 200-day
moving average that's a positive sign," said ABN Amro analyst
Georgette Boele.
    "The market is sceptical about Fed rate rises this year and
next. Overall we're optimistic about the outlook for gold, we
(see) a weaker dollar later in the year," she added.  
    Spot gold        rose 0.5 percent to $1,250.30 per ounce by
1357 GMT. It hit a near six-week low of $1,236.46 on Monday.
    U.S. gold futures         for August rose 0.4 percent to
$1,250.90 per ounce.        
    Fed Chair Janet Yellen addresses the British Academy in
London at 1700 GMT, after a speech by Philadelphia Fed President
Patrick Harker in the U.S. city at 1515 GMT
    Before that, the dollar        slipped 0.6 percent against
major currencies, hitting a nine month low versus the euro after
the European Central Bank President said he might begin to
reduce the Bank's emergency economic stimulus.       
    A weak dollar makes dollar-priced gold cheaper for non-U.S.
investors.       
    Gold prices have gained every month this year save June,
thanks partly to geopolitical tensions which most recently
included Syrian hostilities, a bailout of Italian banks, the
policies of U.S. President Donald Trump and Britain's
negotiations to quit the European Union.
    "The gold market is seeing a bit of a bid right now. Growing
tensions in the Middle East may be playing a part," said INTL
FCStone's Ed Meir in a note. 
    The White House warned Syrian President Bashar al-Assad on
Monday that he and his military would "pay a heavy price" if it
conducted a chemical weapons attack and said the United States
had reason to believe such preparations were underway.
            
    Among other precious metals, silver        rose 0.3 percent
to $16.61 an ounce, while palladium        was flat at $864.97
per ounce.
    Platinum        rose 0.7 percent to $918.75, recovering from
Monday's six-week trough.
    

 (Additional reporting by Nithin Prasad and Vijaykumar Vedala in
Bengaluru; Editing by Edmund Blair and David Evans)
  

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