April 18, 2018 / 10:15 AM / 3 months ago

PRECIOUS-Gold advances on technical buying, light safe haven demand

    * Safe-haven demand supporting gold -traders
    * Analysts looking to see if gold can get to $1,370 and
above 
    * GRAPHIC-2018 asset returns: tmsnrt.rs/2jvdmXl

 (Recasts; updates prices, headline; adds comment, NEW YORK
dateline, byline)
    By Renita D. Young and Zandi Shabalala
    NEW YORK/LONDON, April 18 (Reuters) - Gold prices rose to a
one-week high on Wednesday on technical trading and some
safe-haven demand even as the dollar held on to gains and stocks
rose on risk appetite.
    Spot gold        was up 0.2 percent at $1,349.71 per ounce
by 1:48 p.m. EDT (1748 GMT), after touching its highest since
April 11, while U.S. gold futures         for June delivery
settled up $4, or 0.3 percent, at $1,353.50 per ounce. 
    "We are up on safe-haven demand and a general commodities
move," said George Gero, managing director of RBC Wealth
Management, adding concerns over U.S. sanctions on Russia still
remain.
    Gold broke above $1,350, a significant resistance level for
gold, said Activtrades chief analyst Carlo Alberto De Casa, and
a close above this level would confirm positive momentum for
gold.
    "If gold can remain above the $1,350 level for a couple of
days there is a good chance to see it jumping up to $1,400," he
said.
    Kitco Metals senior analysts Jim Wyckoff said the chart
positions for gold and silver are "tilted in favor of the bulls,
which is inspiring technically based buying interest at
mid-week."
    The dollar index       , which measures the greenback
against a basket of currencies, eased toward a three-week low
reached on Tuesday. A weaker greenback makes dollar-priced gold
cheaper for holders of other currencies.       
    Dollar losses were capped by a weaker pound which fell to a
four-day low on Wednesday after British inflation unexpectedly
cooled to a one-year low in March.                          
    Robust corporate earnings this week capped gains in
non-interest yielding gold and lifted stocks.            
    In physicals, Sri Lanka imposed a 15 percent tax on imported
gold with effect from Wednesday to prevent illegal smuggling of
the metal from the island nation, a finance ministry official
said.             
    Spot silver        climbed 2.7 percent at $17.19 per ounce,
after touching its highest since Feb. 1 of $17.26.
    Platinum        gained 0.3 percent at $938.50 per ounce,
after hitting a three-week high of $948.70. 
    Palladium        rose 2.6 percent to $1,036 per ounce,
having touched its highest since Feb. 28, $1,046.20.
    Palladium prices rose on fears of Russian supply disruptions
after the recent U.S. sanctions on shareholders of Nornickel,
the world's largest producer.                          
            
    "We believe the recent rally is mainly driven by speculation
and the gains are on a weak footing," Julius Baer said, adding
that sanctions were unlikely to be extended to Nornickel itself
because the United States needs palladium.

 (Additional reporting by Eileen Soreng and Apeksha Nair in
Bengaluru; Editing by Louise Heavens and Richard Chang)
  
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