November 30, 2017 / 11:15 AM / 15 days ago

PRECIOUS-Gold dips 1 percent as strong global markets weigh

    * Spot gold heading for first monthly gain since August
    * Gold in narrowest range in 12 years: reut.rs/2AHXSbd
    * Silver falls to eight-week low at $16.37/oz

 (Recasts; updates prices, headline; adds comment, byline, NEW
YORK dateline)
    By Renita D. Young and Maytaal Angel
    NEW YORK/LONDON Nov 30 (Reuters) - Gold dropped 1 percent on
Thursday as upbeat sentiment on equities and positive U.S.
growth data dented the appeal of the safe-haven asset, though
the metal was still stuck in its narrowest monthly range in 12
years.
    Silver dipped to an eight-week low, falling in tandem with
other industrial metals, traders said.
    The U.S. dollar, in which gold is priced, held firm after
U.S. jobless and consumer spending data, taking support from
Wednesday's uplift on third-quarter U.S. economic growth. 
    Spot gold        was down 0.7 percent at $1,274.51 an ounce
by 1:53 p.m. EST (1853 GMT), having earlier hit its lowest since
Nov. 14 at $1,270.11. 
    The price is up 0.3 percent this month, though it has been
stuck between $1,265 and $1,300 throughout November. 
    U.S. gold futures         settled down $8.90, or 0.7
percent, at $1,273.20 per ounce, closing the month up 0.2
percent.
    Silver        dropped to $16.30 an ounce, its lowest since
Oct. 6 and was last down 0.7 percent at $16.41, headed for a 1.7
percent drop over last month.
    "Silver is being sold off as part of the industrial
complex," said John Lawrence, senior metals trader for Heraeus
Precious Metals in New York.
    Global equities were on course to finish November with a
13th consecutive monthly gain, though a dive in U.S. technology 
stocks left investors wondering whether the longest global
equity bull run in living memory might be starting to splutter.
           
    "Optimism (in equities) is at record highs, so it should
come off a bit, which would be reasonably positive for gold. But
the stronger dollar will cap any gains that come on the back of
(that)," said Martin Arnold, strategist at ETF Securities. 
    Early in the session a stronger U.S. dollar weighed on gold,
but the greenback reversed as investors added bets that the U.S.
central bank will continue to unwind its stimulus plan, helping
gold to move off its lows.       
    The U.S. economy's growth will warrant continued interest
rate increases amid a strengthened global recovery, outgoing
U.S. Federal Reserve Chair Janet Yellen said on Wednesday.
            
    Bullion is highly sensitive to rising U.S. interest rates,
which increase the opportunity cost of holding non-yielding
gold.
    Palladium        fell 0.4 percent to $1,009.50, but headed
for a 3 percent monthly rise. Platinum        was up 0.6 percent
at $941.80 an ounce, also poised for a 3 percent rise for the
month.

 (Additional reporting by Vijaykumar Vedala in Bengaluru and
Eric Onstad in London; Editing by David Goodman and Tom Brown)
  

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