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PRECIOUS-Gold dips on firmer dollar but stays close to 1-mth peak
November 20, 2017 / 4:44 AM / a month ago

PRECIOUS-Gold dips on firmer dollar but stays close to 1-mth peak

    * Spot gold may retest resistance at $1,298 -technicals
    * Platinum slips after marking near two-month high on Friday

 (Updates prices)
    By Vijaykumar Vedala
    Nov 20 (Reuters) - Gold eased on Monday due to a stronger
U.S. dollar, but remained near a one-month high hit in the
previous session on uncertainty over progress on a potential
overhaul of the U.S. tax code.
    Spot gold        was down 0.2 percent at $1,291.44 per ounce
by 0757 GMT, but not far off Friday's peak of $1,297, its
strongest level since Oct. 16.   
    U.S. gold futures         for December delivery dropped 0.4
percent to $1,291.20.
    "Friday's move higher has definitely improved gold's chart
patterns, but it remains to be seen if this will be enough to
attract fresh fund buying," INTL FCStone analyst Edward Meir
said in a note. 
    "Much of this will depend on the progress (or lack thereof)
that the U.S. tax bill makes in the Senate. If efforts to pass
it flounder, we could see a much sharper correction set in over
U.S. equities, prompting another leg higher in gold."
    U.S. President Donald Trump would not insist on including
repeal of an Obama-era health insurance mandate in a bill
intended to enact the biggest overhaul of the tax code since the
1980s, a senior White House aide said on Sunday.                
    "The apparent difficulty in getting tax cuts approved in the
U.S. Senate has seen investors return to safe-haven assets," ANZ
analysts said in a note. 
    Spot gold may retest a resistance level of $1,298, a break
above which could lead toward the next resistance level at
$1,309, according to Reuters technical analyst Wang Tao.
            
    Gold could easily push higher and potentially above $1,300,
said Jordan Eliseo, chief economist at gold trader ABC Bullion. 
    "A little bit of momentum is creeping in this market, so
that shouldn't be a surprise. Meanwhile, a little bit of
volatility is creeping up in other financial markets," he said. 
    The dollar index, which tracks the greenback against a
basket of six rival currencies, gained 0.2 percent        as the
euro        faltered after German Chancellor Angela Merkel's
efforts to form a three-way coalition government failed, raising
concerns over political uncertainty in the euro zone's largest
economy.             
    Hedge funds and money managers raised their net long
positions in COMEX gold and silver contracts in the week to Nov.
14, data showed on Friday.             
    Silver        fell 0.8 percent to $17.16 an ounce after
hitting a one-month high in the previous session, while platinum
       retreated from Friday's near two-month peak of $954.30
and was down 0.8 percent at $943.40.
    Palladium rose 0.3 percent to $996 an ounce. 

 (Reporting by Vijaykumar Vedala in Bengaluru; Editing by Joseph
Radford and Manolo Serapio Jr.)
  

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