June 22, 2018 / 4:14 AM / in 10 months

PRECIOUS-Gold prices edge up as dollar retreats from 11-mth peak

    * Gold poised for a 0.7 pct fall on week
    * SPDR holdings drop 0.5 pct 
    * Spot gold still targets $1,258/oz - technicals

 (Updates prices)
    By Karen Rodrigues
    BENGALURU, June 22 (Reuters) - Gold prices inched higher on
Friday after hitting a six-month trough in the previous session,
as the U.S. dollar pulled back from a 11-month peak on
    Spot gold        was up 0.2 percent at $1,269.46 an ounce,
as of 0644 GMT. In the prior session, bullion touched $1,260.84,
its lowest since Dec. 19, 2017.
    The yellow metal was, however, headed for a 0.7 percent
decline for the week.
    U.S. gold futures         for August delivery were 0.1
percent higher at $1,271.50 per ounce.
    Gold has rebounded a little bit from the lower side due to
the weakness in the dollar, said Ronald Leung, chief dealer at
Lee Cheong Gold Dealers in Hong Kong.
    A weaker greenback makes dollar-denominated gold cheaper for
holders of other currencies.
    The dollar pulled back from an 11-month peak against a
basket of major currencies on Friday, as investors took profits
after the currency's earlier rally, while sterling rebounded
from a seven-month low after a slightly hawkish tilt from the
Bank of England surprised the market.                    
    Asian shares stumbled to their lowest in six months on
Friday, hurt by signs U.S. trade battles with China and many
other countries are starting to chip away at corporate profits,
while oil prices were choppy before an OPEC meeting to discuss
raising output.                               
    The trade war is affecting gold for the time-being. Unless
the dollar weakens, do not expect gold to move too high, Leung
    Spot gold still targets $1,258 per ounce, as suggested by
its wave pattern and a projection analysis, said Reuters
technicals analyst Wang Tao.         
    Holdings of SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, dropped 0.5 percent to 824.63
tonnes on Thursday.          
    Meanwhile, the ongoing trade war between the world's two
largest economies has now claimed another victim - Germany's
auto sector.             
    Auto catalysts platinum        and palladium        were
little changed at $861.80 and $952 per ounce, but were headed
for weekly declines of over 3 percent.
    Earlier in the session, palladium slipped to a seven-week
low of $947.15 an ounce. 
    Silver        was up 0.5 percent at $16.39 an ounce and was
on course for a 0.6 percent decline this week. It fell to its
lowest since May 2 at $16.16 in the previous session.

 (Reporting by Karen Rodrigues in Bengaluru, Editing by Sherry
Jacob-Phillips and Biju Dwarakanath)
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