December 21, 2017 / 5:11 AM / 10 months ago

PRECIOUS-Gold slips from 2-wk high as dollar gains

    * Spot gold resistance at 200-day moving avg around $1,269
-trader
    * Dollar up vs yen after BOJ keeps policy steady
    * Asian shares show muted reaction to U.S. tax cuts

 (Adds comments from analyst and trader, updates prices)
    By Apeksha Nair
    Dec 21 (Reuters) - Gold prices reversed course and turned
lower on Thursday, after earlier touching a two-week high, as
the dollar edged up.
    Spot gold        was down about 0.1 percent at $1,265.02 an
ounce as of 0816 GMT, after earlier hitting its best since Dec.
6 at $1,268.26.
    U.S. gold futures         fell 0.1 percent at $1,268.30 an
ounce.  
    "The current weakness in the gold price is mainly due to the
strength of the dollar," said Naeem Aslam, chief market analyst
at Think Markets UK.   
    The dollar edged higher against the yen on Thursday, after
comments by Bank of Japan Governor Haruhiko Kuroda reinforced
expectations that the BOJ was in no hurry to move away from its
ultra-loose monetary policy.       
    Earlier in the session, gold prices hit a two-week high,
helped by seasonal demand and steady closes on the technical
charts, a Hong Kong-based trader said.
    The 200-day moving average around $1,269.50 is currently
weighing upon any attempts higher (for gold), MKS PAMP trader
Sam Laughlin said in a note.    
    A rise in U.S. bond yields from optimism after lawmakers in
the United States approved the biggest overhaul of the country's
tax code in 30 years, also offered support to the greenback.
                         
    Rising bond yields tend to boost the dollar and weigh on the
appeal of non-interest bearing gold.
    Asian stocks, however, traded lower as cheer waned after the
passage of the bill with investors remaining divided on its
impact on the U.S. economy.             
    "We think that the pullback in the equity market could bring
some shine for the yellow metal," Aslam said.
     "Trump's threat to withdraw aid for the countries which
have voted against his Jerusalem decision also clearly states
that geopolitical tensions aren't going away anytime soon and
they could support the metal price in the long-term."  
    U.S. President Donald Trump on Wednesday threatened to cut
off financial aid to countries that vote in favor of a draft
United Nations resolution calling for the United States to
withdraw its decision to recognize Jerusalem as Israel's
capital.               
    Among other precious metals, spot silver        was
unchanged at $16.17 an ounce, having climbed to a two-week top
of $16.26 in the previous session. 
    Platinum        was 0.5 percent lower at $913.50 an ounce,
after marking its best since Dec. 5 in the previous session. 
    Palladium        gained 0.2 percent to $1,027.57. 

 (Reporting by Apeksha Nair in BENGALURU; Editing by Tom Hogue
and Biju Dwarakanath)
  
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