August 15, 2017 / 4:04 AM / 2 years ago

PRECIOUS-Gold falls on rising risk appetite as N.Korea tensions ease

    * Spot gold may fall more to $1,267/oz - technicals
    * Silver falls 1 pct, platinum hits one-week low
    * Dollar index        up 0.3 pct at 93.667

 (Recasts, updates prices)
    By Apeksha Nair
    BENGALURU, Aug 15 (Reuters) - Gold prices fell on Tuesday as
easing tensions between the United States and North Korea pushed
investors to seek riskier assets such as equities.
    Spot gold        was down 0.6 percent at $1,274.31 per ounce
as of 0626 GMT. U.S. gold futures         for December delivery
shed 0.8 percent to $1,280.10 per ounce.
    "It is safe to say that the safe-haven demand is badly
quelled," said Naeem Aslam, chief market analyst at Think
Markets. "The Asian markets are poised to build on this
momentum."  
    Asian shares rallied and the dollar firmed, as North Korean
leader Kim Jong Un said he would watch the actions of the United
States for a while longer before making a decision on firing
missiles towards U.S. Pacific territory Guam.                   
               
    U.S. Defence Secretary Jim Mattis however warned on Monday
that its military would be prepared to intercept a missile fired
by North Korea if it was headed to Guam.             
    "...the latest comments by the U.S. defence secretary has
upped the ante somewhat...So the latest pullback in the gold
price doesn't mean that the bulls are out of energy," Aslam
said.
    Geopolitical risks can boost demand for safe-haven assets
such as gold and the Japanese yen, which tends to gain in times
of crisis on assumptions that Japanese investors will repatriate
assets.  
    "Safe haven flows into the yen and gold has fallen a little
bit because of improved risk appetite in the market," said OCBC
analyst Barnabas Gan. "Some risk aversion is taken off the table
simply because some concerns of the North Korean attack has
eased."
    Also weighing on the yellow metal was the prospect of
another increase in U.S. interest rates this year, with one
influential Federal Reserve member backing the move.
            
    Spot gold may fall more to $1,267 per ounce, as it has
broken a support at $1,278, Reuters technical analyst Wang Tao
said.             
    Meanwhile, holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust      , rose 0.53 percent
to 791.01 tonnes on Monday.             
    Silver        fell 1 percent to $16.84 per ounce.
    Platinum        was down 0.6 percent to $959.60 after
earlier touching its lowest in a week.
    Palladium        dipped nearly 0.2 percent to $893.50.

 (Reporting by Apeksha Nair and Nithin Prasad in Bengaluru;
Editing by Sherry Jacob-Phillips and Biju Dwarakanath)
  
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