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PRECIOUS-Gold slips on profit-taking after gains on concerns over Saudi arrests
November 7, 2017 / 4:57 AM / 11 days ago

PRECIOUS-Gold slips on profit-taking after gains on concerns over Saudi arrests

    * Spot gold remains above 100-day moving average on Tuesday
    * It may end consolidation in $1,263-$1,281 range soon-
technicals
    * GRAPHIC-2017 asset returns: tmsnrt.rs/2jvdmXl

 (Recasts first paragraph, updates prices, adds MKS analyst
quote)
    By Vijaykumar Vedala
    Nov 7 (Reuters) - Gold inched down on Tuesday as investors
sold bullion to lock in profits after it gained nearly 1 percent
in the previous session on safe-haven buying following concerns
over the arrests of some Saudi royal family members and
ministers on corruption charges.
    Spot gold        was down 0.2 percent at $1,278.75 per ounce
as of 0746 GMT. The metal jumped nearly 1 percent on Monday, its
biggest single-day percentage gain since Sept. 25 and closing
above its 100-day moving average, which is typically seen as a
bullish signal by technical traders.     
    U.S. gold futures         for December delivery fell 0.2
percent to $1,279.30 per ounce.  
    "Saudi Arabia appears to have spooked global markets with
the spillover from oil flowing into other markets. Gold has
benefited from safe haven flows... Asia has seen some profit
taking set in," said Jeffrey Halley, a senior market analyst
with OANDA.
    Saudi Arabia's future king, Crown Prince Mohammed bin
Salman, tightened his grip on power through an anti-corruption
purge by arresting some members of the kingdom's political and
business elite. 
    The campaign of mass arrests expanded on Monday after a top
entrepreneur was reportedly detained in the biggest
anti-corruption purge of the kingdom's affluent elite in its
modern history.                         
    "The situation in Saudi Arabia will bear close watching and
will likely be the prime driver for gold," said INTL FCStone
analyst Edward Meir in a note.  
    U.S. President Donald Trump's visit to South Korea could
also provide gold with some support over the next few days, Meir
added.  
    Trump flew in to South Korea on Tuesday, the closest he has
come to the frontlines of the nuclear standoff with North Korea,
saying a solution must be found to the security threat posed by
Pyongyang.            
    "We expected some interest in gold following the (Monday's)
close above $1,280. However, Chinese selling, with the SGE
premium lower at $7.00-8.00, appears to be capping the market,"
MKS PAMP analyst Tim Brown wrote in a note.        
    Asian shares rallied to their highest in a decade, while the
dollar index, which tracks the greenback against a basket of six
major currencies, added 0.2 percent to 94.941
      .                  
    Spot gold may end its consolidation within a narrow range of
$1,263 to $1,281 per ounce very soon and then either bounce more
to $1,299 or fall sharply towards $1,241, according to Reuters
technical analyst Wang Tao.             
    Among other precious metals, silver        dropped 0.6
percent to $17.12 an ounce after hitting its highest since Oct.
20 at $17.27 earlier in the session.     
    Platinum        was down 0.9 percent at $925.99 per ounce,
while palladium        fell 0.3 percent to $997.   

 (Reporting by Vijaykumar Vedala in Bengaluru; Editing by
Christian Schmollinger and Biju Dwarakanath)
  

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