May 11, 2018 / 10:45 AM / 12 days ago

CORRECTED-PRECIOUS-Gold flat, set for weekly gain as dollar weakens

 (Corrects headline to "Gold flat" instead of "gold up" and
first paragraph to say "Gold was flat" instead of "gold rose")
    * U.S. dollar, bond yields down
    * Gold headed for 0.5 percent weekly gain
    * Gold nudges 100-day moving average 

    By Renita D. Young and Peter Hobson
    NEW YORK/LONDON, May 11 (Reuters) - Gold was flat on Friday,
headed for its first weekly gain in four weeks, as the dollar
weakened and investors grew a bit less confident about prospects
that the Federal Reserve would raise interest rates three more
times in 2018.
    Spot gold        was unchanged at $1,321 per ounce by 1:43
p.m. EDT (1743 GMT). During the session it touched its highest
since April 25 at $1,325.96, nudging its 100-day moving average
of $1,326. It was up 0.5 percent for the week so far. 
    U.S. gold futures         for June delivery settled down
$1.60, or 0.1 percent, at $1,320.70 per ounce. 
    "Geopolitical risks in the Middle East, a weaker dollar and
softer Treasury yields are giving gold a temporary boost," said
Walter Pehowich, executive vice president of investment services
at Dillon Gage Metals.
    The dollar fell for a third day on Friday against a basket
of currencies.                     While the 10-year U.S.
Treasury yield rose slightly, it remained below 3 percent. Bond
market investors remain confident the Fed will hike rates in
June, but less sure of prospects for rate hikes in September and
December. 
    A weaker dollar makes gold more attractive for investors
using other currencies. Fewer U.S. interest rate hikes would
lower the opportunity cost of holding non-interest bearing
bullion.
    St. Louis Federal Reserve Bank President James Bullard said
aggressive rate increases would risk nipping off U.S. business
investment.             
    Gold price consolidation above resistance at the 100-day
moving average might be a catalyst for more gains, MKS PAMP
trader Tim Brown said. 
    Capital Economics' Simona Gambarini said the likelihood of
three more Fed interest rate hikes this year would probably
pressure gold prices into ending 2018 at $1,300.
    Gold is considered a safe asset in uncertain times, but
traders said tensions in the Middle East provided limited
support now.             
    "Geopolitical concerns are still a concern but investors
aren't paying significant attention," Think Markets chief
markets analyst Naeem Aslam said. "The dollar story is more
prominent." 
    A summit between the United States and North Korea to be
held in Singapore eased fears of conflict.             
    Silver        was up 0.3 percent at $16.72 an ounce, above
its 100-day moving average and nearing its 200-day moving
average to $16.84. It was at 2-1/2-week highs, set for a weekly
gain of 1.3 percent.
    Platinum        was down 0.4 percent at $920.49 per ounce,
having hit its highest since April 25 at $929.10. It was poised
for a nearly 2 percent weekly increase.
    Palladium        declined 0.8 percent at $991 per ounce, but
earlier hit $1,008.50, a 2-1/2-week high, closing the week more
than 2 percent higher.

 (Additional reporting by Apeksha Nair in Bengaluru
Editing by David Gregorio and Louise Ireland)
  
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