April 21, 2017 / 11:01 AM / 3 years ago

PRECIOUS-Gold climbs quietly as investors wary ahead of French vote

    * Gold on track for steady weekly performance after 5 higher
    * Silver falls for 5th session

 (Updates prices; adds comment, second byline, NEW YORK to
    By Marcy Nicholson and Eric Onstad
    NEW YORK/LONDON, April 21 (Reuters) - Gold prices rose
slightly on Friday as investors awaited the first-round of
voting in the presidential French election at the weekend and
possible announcements about tax changes in the United States.  
    Spot gold        was up 0.3 percent at $1,284.62 an ounce by
2:30 p.m. EDT (1830 GMT), on track to close the week little
changed after five straight weeks higher.
    U.S. gold futures         settled up 0.4 percent at
    "The big news over the weekend will be the French election
and the market will be to an extent on hold ahead of that," said
Mitsubishi commodities analyst Jonathan Butler.
    There was potential for safe-haven buying of gold after
France said security forces were fully mobilized for the weekend
vote after an Islamist militant killed a policeman Thursday
    "Into the near term, if the geopolitical tensions intensify,
there is a chance that gold prices will reach $1,300 or more,"
OCBC analyst Barnabas Gan said.
    A move in gold above $1,290/91 would be significant as it
would break above a downtrend that has been in place since gold
touched an all-time high of $1,920.30 in 2011, Butler said. 
    "You would have thought with the Champs-Elysees attack that
you would have got a little more safe-haven buying ahead of the
French election," said Rob Haworth, senior investment strategist
for U.S. Bank Wealth Management in Seattle.
    "If you're in the gold market, there's already stretched
speculation and there's not a lot of new news to drive it. So in
the meantime it's probably time for a bit of a pause," he said.
    Investors were also watching events in Washington. President
Donald Trump's administration will unveil a tax reform plan soon
and expects it will be approved by Congress this year, Treasury
Secretary Steven Mnuchin said on Thursday.             
    Gold is at risk of some profit-taking after a strong recent
run, but should be supported by other factors, analysts said.
    "Gold struggled to hold this week's gains as the dollar
strengthened and concerns over global risk eased. However,
selling was relatively muted, which suggests a period of
consolidation is now upon us," ANZ analysts wrote in a note.
    Spot silver        slipped 0.6 percent to $17.89 an ounce,
extending losses into a fifth session, having shed more than 3
percent so far this week despite tapping a five-month high on
    Platinum        slipped 0.8 percent to $970, while palladium
       fell 1 percent at $791.75.

 (Additional reporting by Nallur Sethuraman in Bengaluru;
Editing by Edmund Blair and Leslie Adler)
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