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PRECIOUS-Gold edges higher on softer dollar; focus on Jackson Hole conference
August 23, 2017 / 4:38 AM / 4 months ago

PRECIOUS-Gold edges higher on softer dollar; focus on Jackson Hole conference

    * Investors await Jackson Hole speeches by Yellen, Draghi
    * Spot gold may break support at $1,282/oz - technicals
    * ECB's Draghi to speak in Germany later on Weds

 (Adds detail on Draghi's speech, updates prices)
    By Apeksha Nair
    BENGALURU, Aug 23 (Reuters) - Gold prices inched up on
Wednesday as the dollar slipped after remarks by U.S. President
Donald Trump raised fears of a government shutdown, while
investors awaited further direction from a key annual central
banking conference this week.
    Spot gold        was up 0.1 percent to $1,285.30 an ounce by
0555 GMT, after shedding 0.5 percent in the previous session.
    U.S. gold futures         for December delivery were
unchanged at $1,290.90 per ounce.
    The dollar edged down against the yen following President
Trump's remarks.
    "If we have to close down the government, we are building
that wall," Trump told supporters at a rally in Arizona.       
            
    Elsewhere, markets were bracing for an annual gathering of
central bankers at a meeting in Jackson Hole, Wyoming on
Thursday and Friday, where Federal Reserve Chair Janet Yellen
and European Central Bank chief Mario Draghi are set to deliver
speeches on the outlook for monetary policy and interest rates.
    "Most of the people are now looking for hints from the
Jackson Hole meeting between the central bankers," said Mark To,
head of research at Hong Kong's Wing Fung Financial Group.
    "The most important thing is economic fundamentals...central
banks are going to have tightening measures in monetary policies
to have normalisation. So I don't have much higher upward
momentum for prices," To said. 
    Draghi is also due to give a speech in Germany later in the
day.
    Higher interest rates could boost the dollar and push bond
yields up, putting pressure on gold prices by increasing the
opportunity cost of holding non-yielding bullion. 
    "We could see gold possibly move higher...in light of
concern that inflation data is running very much on the softer
side of estimates," said INTL FCStone analyst, Edward Meir.
    Spot gold may break a support at $1,282 per ounce and fall
into a support zone of $1,270-$1,276, Reuters technical analyst
Wang Tao said.                
    "On the other hand what has been supporting gold for the
last six months or so is the risk aversion," Wing Fung's To
said, referring to the uncertainty around the Trump
administration in the U.S. in particular. 
    The United States on Tuesday imposed new North Korea-related
sanctions, targeting Chinese and Russian firms and individuals
for supporting Pyongyang's weapons programmes, but stopped short
of an anticipated focus on Chinese banks.              
    Among other precious metals, silver        slipped 0.2
percent to $16.94 an ounce, while platinum        was nearly
unchanged at $974.85.
    Palladium        lost 0.8 percent to $925.25 after touching
an over 16-year high at $940 on Tuesday.

 (Reporting by Apeksha Nair in Bengaluru; Editing by Kenneth
Maxwell and Kim Coghill)
  

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