January 23, 2018 / 4:56 AM / 6 months ago

PRECIOUS-Gold rises on wobbly dollar; stocks surge after U.S. govt shutdown ends

    * Spot gold looks neutral in $1,329-$1,341 range -technicals
    * Dollar index near three-year lows hit last week
    * Platinum off highest in more than four months, hit on
Monday

 (Updates with quote, latest prices)
    By Nithin ThomasPrasad
    Jan 23 (Reuters) - Gold prices edged up on Tuesday as the
dollar hovered around three-year lows, with a surge in global
equities capping further gains after a U.S. government shutdown
came to a halt. 
    Gold was mostly unaffected by the shutdown in the previous
session, trading in a tight range defined on the low end by
safe-haven demand amid the U.S. government closure and on the
high end by the resiliency of the wider financial markets. 
    Spot gold        rose 0.2 percent to $1,336.26 per ounce at
0703 GMT, up for a third straight session. 
    U.S. gold futures         for February delivery climbed 0.3
percent to $1,335.70 per ounce.
    The U.S. Senate voted on Monday to pass a temporary spending
plan through Feb. 8 to end the government shutdown.             
    Equity markets have since gained, with Wall Street's main
indexes surging to record highs.             
    "Gold can gain from here as there could be some correction
in the equity markets and cryptocurrencies have started to fall
again. We can see more investors coming into gold, which could
be positive for prices," said Hareesh V., head of commodity
research at Geojit Financial Services.
    "2018 is more or less going to be positive for gold as well
as silver." 
    Bitcoin            was down about 5 percent at $10,293.85 on
the Luxembourg-based Bitstamp exchange. Prices have nearly
halved in value from their peak of almost $20,000 in December,
with investors gripped by fears regulators could clamp down on
the volatile currency.             
    "Gold should see first support level at overnight low of
$1,331 an ounce, with initial resistance expected at the recent
highs of $1,343, closely followed by the psychological $1,350
mark," said MKS PAMP Group trader Tim Brown.
    "A consolidation above that level could be the signal for a
push higher." 
    Spot gold looks neutral in a range of $1,329-$1,341 per
ounce and an escape could suggest a direction, according to
Reuters Technical analyst, Wang Tao.         
    Meanwhile, the dollar index       , against a basket of six
major currencies, was up 0.1 percent at 90.511, not far from a
three-year low hit last week. 
    Platinum        rose 0.2 percent to $996.60 per ounce, down
from a more than four-month high touched in the previous
session. 
    In other precious metals, silver        rose 0.2 percent to
$17.04 per ounce. Palladium        was nearly flat at $1,097.97
per ounce.

 (Reporting by Nithin Prasad and Nallur Sethuraman in BENGALURU;
Editing by Tom Hogue and Subhranshu Sahu)
  
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