November 14, 2017 / 11:37 AM / 10 days ago

PRECIOUS-Gold edges up from one-week low after U.S. dollar dips

    * Gold turns higher after U.S. dollar drops on producer
numbers
    * Speculators up long COMEX gold position, first time in 8
weeks
    * Palladium hits lowest since Oct. 31

 (New throughout, updates prices, market activity and comments,
second byline and NEW YORK dateline)
    By Renita D. Young and Maytaal Angel
    NEW YORK/LONDON, Nov 14 (Reuters) - Gold rose slightly on
Tuesday, as a weakening U.S. dollar and sluggish stock market
helped pull the precious metal off a one-week low hit in early
trade, while traders also said uncertainty over the fate of a
U.S. tax cut prompted some safe-haven buying of gold.
    The U.S. dollar fell against a basket of major
currencies.                    A weaker dollar boosted gold,
making the dollar-denominated commodity less expensive to
holders of other currencies.
    Spot gold        was up 0.34 percent at $1,281.94 per ounce
by 1:50 p.m. EST (1850 GMT), bouncing off a one-week low of
$1,270.56 hit in earlier trade. U.S. gold futures         for
December delivery settled up $4, or 0.3 percent, at $1,282.90
per ounce. 
    "The overall equity markets are seeing a little weakness and
more diversification into safe havens like gold," said Dan
Hussey, senior market strategist at RJO Futures in Chicago,
adding gold prices could target $1,350, in the short term.
    U.S. stock indexes were lower after GE shares plunged for
the second straight day and a drop in oil prices hit energy
stocks.                  
    Worries about Republican tax plans and the economy's ability
to deal with more interest rate hikes dented appetite for assets
perceived as risky and boosted gold's appeal as a safe-haven,
traders said.
    Gold touched a session low of $1,270.56, its lowest since
Nov. 6, after U.S. Treasury yields touched fresh highs as
investors priced in a rate hike next month. Higher bond yields
reduce gold's appeal. 
    On Monday, Congressional Republicans pushed ahead with a
proposed U.S. tax code overhaul, but risks lay ahead with major
intra-party disputes unsettled. A failed tax overhaul would hit
risk appetite and benefit gold.                
    Four of the world's top central bankers promised to keep
openly guiding investors about future policy moves as they
slowly withdraw the huge monetary stimulus rolled out during the
financial crisis.             
    Elsewhere, hedge funds and money managers raised their net
long position in COMEX gold by 7,027 contracts to 173,562
contracts in the week to Nov. 7, U.S. Commodity Futures Trading
Commission data showed Monday.                 
    That marked the first time speculators raised their net long
position in eight weeks.
    Among other precious metals, silver        was up 0.1
percent at $17.05 per ounce, while platinum        was down 0.5
percent at $927. Palladium        was down 0.48 percent at $985
an ounce, recovering from a two-week low of $974.97 hit earlier
in the session.

 (Additional reporting by Vijaykumar Vedala in Bengaluru;
editing by Mark Heinrich and David Gregorio)
  

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