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PRECIOUS-Gold pulls back from five-month high as dollar recovers
April 13, 2017 / 3:57 AM / 8 months ago

PRECIOUS-Gold pulls back from five-month high as dollar recovers

    * Investors on edge over simmering geopolitical tensions
    * Trump says dollar too strong, Fed should keep rates low
    * GRAPHIC-2017 asset returns: tmsnrt.rs/2jvdmXl

 (Updates prices, adds comment)
    By Jan Harvey
    LONDON, April 13 (Reuters) - Gold pulled back from an
earlier five-month high on Thursday as the dollar clawed back
some of the ground it lost after U.S. President Donald Trump
said the U.S. currency was too strong.
    The metal stayed on track for its best week since June,
however, as concerns over tensions in North Korea and the Middle
East kept stock markets under pressure.            
    Spot gold        was down 0.3 percent at $1,283.30 an ounce
by 1410 GMT, having earlier hit its strongest since early
November at $1,287.98 an ounce. U.S. gold futures        for
June delivery were $7.10 higher at $1,285.20. 
    "Since risk aversion is now in place and equity markets are
on the retreat, gold prices are supported, but should this trend
reverse, I wouldn't be surprised to see gold coming under some
pressure," Commerzbank analyst Eugen Weinberg said.  
    Trading volumes in wider markets have been light ahead of
the long Easter weekend.
    While the dollar pulled back some ground, Trump's comments
kept Treasury yields on track for their biggest weekly declines
since late 2015, while stock markets fell 0.3 percent in Europe.
            
    Fears of a new weapons test by North Korea as a U.S. carrier
group sailed towards the region, as well as worries about the
forthcoming French presidential election, also kept investors on
edge.             
    Russian President Vladimir Putin said on Wednesday trust had
eroded between the United States and Russia under Trump, as
Moscow delivered an unusually hostile reception to U.S.
Secretary of State Rex Tillerson in a face-off over Syria.
            
    "We remain constructive on gold (given) elevated political
tensions in both Korea and Syria, coupled with a lower drift
evident in U.S. equity markets," INTL FCStone said in a note. 
    From a technical perspective, gold is facing strong
near-term resistance at $1,291 an ounce, the location of a
trendline declining from its 2011 record high of $1,920.30 an
ounce, analysts said.
    On the major physical gold markets, the precious metal was
sold at a discount to spot prices in India this week for the
first time in six weeks, while demand elsewhere in Asia remained
subdued as surging bullion prices deterred buyers.         
    Among other precious metals, silver        was flat at
$18.46, off an earlier five-month high of $18.599.  Platinum
       was 0.4 percent higher at $972, while palladium was up
0.1 percent to $797.40.

    
 (Additional reporting by Nallur Sethuraman in Bengaluru;
Editing by David Goodman and David Holmes)
  

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