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PRECIOUS-Gold slips as dollar strengthens against yen after Trump-Abe meet
February 13, 2017 / 3:34 AM / 9 months ago

PRECIOUS-Gold slips as dollar strengthens against yen after Trump-Abe meet

    * Spot gold may revisit Feb. 10 low of $1,221.02 -technicals
    * Silver touches highest since Nov. 11
    * Speculators raise net long position in gold in week to
Feb. 7

 (Updates prices; adds comment, detail)
    By Arpan Varghese
    Feb 13 (Reuters) - Gold slipped on Monday as the dollar
strengthened against the yen, with the greenback buoyed by a
smooth meeting between U.S. President Donald Trump and Japanese
Prime Minister Shinzo Abe that saw no mention of currency
policy.
    Spot gold        had fallen 0.31 percent to $1,230.22 per
ounce by 0608 GMT, while U.S. gold futures were down 0.36
percent at $1,231.3.
    The dollar briefly touched its highest since Jan. 30 at
114.17 yen       , with relief that Trump set aside his tough
campaign rhetoric over security and jobs in a meeting with the
Japanese Prime Minister over the weekend.              
    "Quietness on the protectionism front and a rekindling of
the Trump-flation trade is taking the wind out of gold's
safe-haven sails," said Jeffrey Halley, senior market analyst at
OANDA.
    A senior Japanese government spokesman said Abe and Trump
did not discuss currency issues and that Trump did not request a
bilateral trade deal.             
    The U.S. currency also found broad support from comments by
Trump on Thursday that he planned to announce an ambitious tax
reform plan in the next few weeks, rekindling hopes for big tax
cuts. The dollar index        was firm at 100.820.
    Spot gold        may revisit its Feb. 10 low of $1,221.02
per ounce, according to Reuters technical analyst Wang Tao.
            
     However, political risk from elections in Europe and
worries over Trump's policies will maintain underlying
safe-haven appetite for the metal, traders said.
    "Prices are likely to recover again, even though there may
be slight corrections," said Hareesh V, research head at Geofin
Comtrade Ltd.
    "Global uncertainty from the U.S., Europe and on the Korean
front will drive global prices high again as prices couldn't
break the December-low," he added.
    Gold has rallied nearly 10 percent after touching its lowest
in over 10 months, at $1,122.35 an ounce, in December, following
the U.S. Federal Reserve's move to raise interest rates for the
first time in a year.
    North Korea said on Monday it had successfully test-fired a
new type of medium- to long-range ballistic missile, claiming
further advancement in a weapons programme it is pursuing in
violation of United Nations resolutions.             
    Speculators raised their bullish wagers in COMEX gold to the
highest in two months in the week to Feb. 7, U.S. Commodity
Futures Trading Commission data showed on Friday.              
    In other precious metals, spot silver        was mostly
unchanged at $17.94 per ounce, after touching its highest since
Nov.11 at $18 earlier in the session.
    Platinum        eased by 0.8 percent to $1,002.35 per ounce.
    Palladium        was down 0.5 percent at $779.98 per ounce,
after hitting $786.90, its strongest in over two weeks.

 (Reporting by Arpan Varghese and Nallur Sethuraman in
Bengaluru; Editing by Joseph Radford and Richard Pullin)
  

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