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PRECIOUS-Gold at 2-wk high as cloudy U.S. rate hike outlook drags on dollar
July 18, 2017 / 4:08 AM / in 3 months

PRECIOUS-Gold at 2-wk high as cloudy U.S. rate hike outlook drags on dollar

    * Spot gold faces resistance at $1,239/oz-technicals
    * Silver hits highest in two weeks
    * Platinum off one-month high touched in previous session

 (Updates prices, revises second and fourth paragraphs)
    BENGALURU, July 18 (Reuters) - Gold prices rose to a
two-week high on Tuesday as the dollar dipped to multi-month
lows amid fading prospects of further rate hikes by the U.S.
Federal Reserve this year and doubts whether President Donald
Trump would be able to push through healthcare reforms.
     The U.S. dollar sank to a 10-month low against a basket of
major currencies on Tuesday, hobbled by uncertainty over the
pace of the Fed's policy tightening and setbacks to the passage
of a U.S. healthcare bill.       
    "With the street repricing its U.S. interest rate outlook
following soft data and a dovish Yellen, and with President
Donald Trump's reflationary reforms seemingly lost in the
legislative Bermuda Triangle of Congress, a weaker U.S. dollar
should continue to support gold," said Jeffrey Halley, a senior
market analyst at OANDA.
    Republicans in the U.S. Congress were in chaos over
healthcare legislation after a second attempt to pass a bill in
the Senate collapsed late on Monday, with President Donald Trump
calling for an outright repeal of Obamacare and others seeking a
change in direction toward bipartisanship.             
    Spot gold        was up 0.3 percent to $1,237.66 per ounce
at 0631 GMT, after touching $1,238.76, the highest since July 3,
earlier in the session.  
    U.S. gold futures         for August delivery rose 0.3
percent to $1,236.80 per ounce.
    "At this moment, gold is likely to be in the trading range
of $1,200-1,250," said Mark To, head of research at Hong Kong's
Wing Fung Financial Group.
    Prices of the metal are unlikely to significantly break
above these levels since there are no other major drivers,
including geopolitical factors, for gold as of now, he added.
   Spot gold        faces a resistance at $1,239 per ounce, and
may temporarily hover below this level or retrace towards a
support at $1,226, according to Reuters technical analyst Wang
Tao.             
    Meanwhile, SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, said its holdings fell 0.21
percent to 827.07 tonnes on Monday from 828.84 tonnes on Friday.
         
    In other precious metals, silver        rose 0.4 percent to
$16.14 per ounce, after earlier touching its highest in just
over two weeks at $16.23.
    Platinum        rose 0.3 percent to $923.80 per ounce. It
had touched an over one-month high of $934.40 in the previous
session.
    Palladium        was mostly unchanged at $864.98 per ounce.

 (Reporting by Arpan Varghese in Bengaluru; Editing by Sunil
Nair)
  

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