November 29, 2017 / 10:44 AM / a year ago

PRECIOUS-Gold extends losses as global stocks hover near record highs

    * Palladium dips further from Tuesday's 17-year peak
    * Gold in narrowest range in 12
    * Silver at lowest since Oct. 6

 (New throughout, updates prices; adds new silver milestone,
market activity, comments, byline, NEW YORK dateline)
    By Renita D. Young and Jan Harvey
    NEW YORK/LONDON, Nov 29 (Reuters) - The price of gold fell
on Wednesday, as global stocks hovered near record highs making
the safe-haven asset less attractive, and upbeat U.S. growth
data prompted an earlier rise in the U.S. dollar and U.S.
Treasury yields.
    The U.S. data, along with signs of progress with the U.S.
tax overhaul and Europe's Brexit negotiations, brought fresh
highs for world stocks earlier Wednesday, while crypto currency
bitcoin smashed past the $11,000 level for the first time, hours
after it hit the $10,000 mark.            
    World stocks and Treasury yields later retreated from daily
highs and the U.S. dollar index        fell slightly against a
basket of currencies. However, gold fell further though it
remained stuck within the narrowest monthly range since 2005,
while silver dipped to its lowest in nearly 8 weeks.
    Spot gold        was down 0.7 percent at $1,284.23 an ounce
by 2:45 p.m. EST (1945 GMT). U.S. gold futures        for
December delivery settled down $12.80, or 1 percent, at
$1,282.10 per ounce. 
    "This drop in gold came when GDP surprised to the upside,
the dollar started to rally and yields moved higher," Julius
Baer analyst Carsten Menke said.
    "The drop in physical demand has made gold very, very
sensitive to the U.S. dollar and U.S. bond yields. There is
basically nothing else that is driving the gold market this
    Gold has risen 12 percent so far in 2017, bouncing in the
first quarter as it clawed back some losses posted towards the
end of 2016 in the run-up to the second U.S. interest rate
increase in a decade. 
    Bullion is highly sensitive to rising U.S. interest rates,
which increase the opportunity cost of holding non-yielding
    While another rate increase is expected next month, fears
for more aggressive hikes have receded.              
    A lack of clear drivers has kept gold between $1,265 and
$1,300 throughout November, its narrowest monthly range in 12
    "Right now, it’s mainly an unwillingness to aggressively
commit to either way in the gold market,” said George Gero,
managing director of RBC Wealth Management in New York.
    Recent record highs in global stocks and alternative assets
pressure gold, while uncertainty over U.S. tax legislation and
geopolitical risks support it, Gero added.             
    Among other precious metals, silver        was down 1.6
percent at $16.56 an ounce, after touching $16.50, its lowest
since Oct. 6.
    Palladium        dipped 1.4 percent at $1,012.72 an ounce,
after reaching its highest since February 2001 on Tuesday at
$1,028.70, while platinum        was down 1 percent at $939.50.

 (Additional reporting by Vijaykumar Vedala and Arpan Varghese
in Bengaluru; Editing by Greg Mahlich and Chizu Nomiyama)
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