Reuters logo
REFILE-PRECIOUS-Gold hits 1-week high amid renewed North Korea fears (Oct 9)
October 9, 2017 / 4:33 AM / 2 months ago

REFILE-PRECIOUS-Gold hits 1-week high amid renewed North Korea fears (Oct 9)

 (In Oct 9 item, corrects spelling to 'chalking' in paragraph
12)
    * Spot gold may rise to $1,299/oz- technicals
    * Specs reduce net longs in gold and silver for 3rd week

    By Apeksha Nair
    Oct 9 (Reuters) - Gold prices climbed to their strongest
level in more than a week on Monday as renewed concerns over
North Korea's nuclear ambitions stoked safe-haven demand for the
precious metal and weighed on the dollar.
    Spot gold        was up 0.4 percent at $1,279.99 an ounce by
0705 GMT, after earlier touching $1,284.97, its highest level
since Sept. 29.
    U.S. gold futures         for December delivery gained 0.6
percent to $1,282.40 per ounce.
    The dollar held steady against the yen, having retreated
from 12-week highs set last week, due to a renewed focus on
geopolitical risks amid concerns that North Korea may be
preparing another missile test.                       
    "This is really arbitrage driven, and the Chinese having
come back and trading the difference between the arbitrage," a
Hong Kong-based trader said, adding that developments over the
weekend concerning North Korea provided support for gold.
    Chinese markets reopened on Monday after a week-long
National Day holiday.
    Geopolitical risks can boost demand for safe-haven assets
such as gold and the Japanese yen.               
    North Korea's leader Kim Jong Un said his nuclear weapons
were a "powerful deterrent" that guaranteed its sovereignty,
hours after U.S. President Donald Trump said "only one thing
will work" in dealing with the isolated country.              
    Gold might face initial resistance at around $1,285, the
trader said.
    But Reuters technical analyst Wang Tao said he sees the next
resistance level for the precious metal at $1,299 after it
breached $1,281, Reuters technicals analyst Wang Tao said.
                
    U.S. employment fell in September for the first time in
seven years, data on Friday showed, due to impacts from
Hurricanes Harvey and Irma.             
    Chalking up employment losses last month to the temporary
hit of a severe hurricane season, and reiterating expectations
that inflation will firm, Federal Reserve policymakers on Friday
signalled they continue to see gradual U.S. interest-rate hikes
ahead.             
    Higher interest rates tend to boost the dollar, putting
pressure on the greenback-denominated bullion.    
    Speculators reduced their net long positions in COMEX gold
and silver contracts for the third straight week, in the week to
Oct. 3.        
    In other metals, silver        was last up 0.7 percent at
$16.90 an ounce, having touched a nearly two-week high of $16.99
earlier.
    Platinum        and palladium        were both up 0.5
percent, at $917.50 and $924.65 an ounce, respectively.

 (Reporting by Apeksha Nair in Bengaluru; Editing by Amrutha
Gayathri and Manolo Serapio Jr.)
  

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