March 6, 2018 / 11:08 AM / 8 months ago

PRECIOUS-Gold rallies 1.4 pct as potential North Korea talks hurt dollar

    * Dollar slips further as North Korea hints at talks
    * Trump faces pushback on tariff plans
    * GRAPHIC-2018 asset returns:

 (Recasts, updates prices, adds comment, adds NEW YORK to
    By Renita D. Young and Jan Harvey
    NEW YORK/LONDON, March 6 (Reuters) - Gold prices rose more
than 1 percent on Tuesday as the U.S. dollar slid after North
Korea signaled that it is open to nuclear talks and investors
worried about aggressive U.S. trade policy. 
    The greenback hit a two-week low as traders bet on riskier
currencies and assets on news North and South Korea would hold
their first summit in more than a decade and after the South
said the North was willing to discuss denuclearization with the
United States.             
    Spot gold        gained 1.1 percent at $1,334.79 per ounce
by 1:33 p.m. EST (1833 GMT), while U.S. gold futures         for
April delivery settled up $15.30, or 1.2 percent, at $1,335.20.
    "As a result of the weaker dollar, gold - together with oil
and industrial metals - has benefited from the North Korean
news," said Saxo Bank's Ole Hansen. "This (is) despite the
potential for lowering the geopolitical risk should we move
towards a denuclearized Korean peninsular."
    Gold prices rose 1.4 percent to $1,338.49 per ounce, their
highest since Feb. 26, surpassing a key level. "Gold broke
through the 50-day moving average at $1,329, and probably
triggered some buy stops," said Phillip Streible, senior
commodities strategist at RJO Futures.
    Resistance is around the $1,350-$1,357 per ounce range, said technical analyst Fawad Razaqzada. "A break above this
zone is still required before we turn decidedly bullish on gold
    Stocks fell in the United States and edged higher in Europe,
but a global gauge of major equity markets was up, boosted by
gains in Asia after stocks were battered Monday on concerns over
a global trade war.                                
    Worries that proposed tariffs by the Trump administration
could touch off a trade war have eased somewhat. Still,
uncertainty has helped to keep the dollar on the back foot and
shored up interest in gold as a safe haven.             
    U.S. Treasury Secretary Steven Mnuchin said the Trump
administration will try to keep any new steel and aluminum
tariffs from hurting the economy.             
    Among other precious metals, silver        increased 2.1
percent at $16.77 an ounce after hitting $16.86, a 2-1/2-week
high. Platinum        rose 0.8 percent at $968.70 per ounce.
    Palladium        gained 0.4 percent at $986.60 per ounce,
earlier hitting a three-week low of $974. The autocatalyst metal
has run into strong support at $975 an ounce, a key retracement
of its Jan 2016-Jan 2018 rally, after falling more than 5
percent last week. 

 (Additional reporting by Eileen Soreng in Bengaluru
Editing by David Gregorio and Ed Osmond)
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