Reuters logo
PRECIOUS-Gold succumbs to profit taking after touching one-year high
September 5, 2017 / 11:07 AM / 2 months ago

PRECIOUS-Gold succumbs to profit taking after touching one-year high

    * Palladium off its highest since Feb. 2001
    * N.Korea seen moving ICBM -S.Korean media
    * GRAPHIC-2017 asset returns: tmsnrt.rs/2jvdmXl

 (Updates prices)
    By Zandi Shabalala
    JOHANNESBURG, Sept 5 (Reuters) - Gold eased on Tuesday as
investors booked profits after the previous session's rise to a
one-year high, though prices remain underpinned by safe-haven
demand because of continued concern over North Korea's nuclear
tests.
    Spot gold        was down 0.2 percent at $1,332.16 an ounce
by 1336 GMT, having peaked on Monday at $1,339.47, its highest
since late September.
    U.S. gold futures         were up 0.6 percent at $1,337.80.
    "Gold shot up quite a bit in the past few days so if you
bought it then you've made a nice profit and you could take some
off the table," said Robin Bhar, head of metals research at
Societe Generale.
    Holdings in the world's largest gold-backed exchange-traded
fund, SPDR Gold Shares GLD, rose on Friday to help underpin 
prices.          
    Much of gold's recent strength can be attributed to the
flight to assets perceived as being at less risk from
geopolitical uncertainty that has been stoked up by events in
the Korean peninsula. 
    South Korea said on Tuesday an agreement with the United
States to scrap a weight limit on its warheads would help it to
respond to the threat from North Korea after Pyongyang conducted
its sixth and largest nuclear test two days ago.             
    North Korea has been observed moving what appeared to be an
intercontinental ballistic missile (ICBM) towards its west
coast, South Korea's Asia Business Daily reported on Tuesday.
                
    Yet stock markets in Europe bounced back on Tuesday as
traders showed reluctance to price in the tail risks on every
possible bad outcome and instead focused on the more prosaic but
upbeat global economic picture.                        
    A recovery in the global economy is negative for gold
because it raises expectations for interest rate increases,
which lift the opportunity cost of holding non-yielding assets
and boost the dollar, in which gold is priced.
    Among other precious metals, silver        was down 0.1
percent at $17.91 an ounce, while platinum        slipped 0.4
percent to $1,003.40.
    Palladium        rose 1.3 percent to $989.20 after reaching
its highest since February 2001 at $1,001 in the previous
session.

 (Reporting by Zandi Shabalala; Editing by Andrew Heavens and
Louise Heavens)
  

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below