PRECIOUS-Gold holds steady on softer dollar, U.S.-Iran tensions
Published Apr 22, 2019 14:08
PRECIOUS-Gold holds steady on softer dollar, U.S.-Iran tensions
* Speculators switched to net short in COMEX gold last week -CFTC
* SPDR gold holdings fall to lowest in over six months
* Brent prices jump 3 percent to highest since November (Updates prices)
By Brijesh Patel
April 22 (Reuters) - Gold steadied on Monday, holding above a nearly four-month low touched the previous session on support from a weaker dollar and expectations the United States would put further restrictions on Iran's oil exports.
Spot gold XAU= was slightly up 0.1 percent at $1,275.62 per ounce as of 1:47 p.m. EDT (1747 GMT). On Thursday, it touched $1,270.63, its lowest since Dec. 27. The market was closed on Friday.
U.S. gold futures GCv1 settled 0.1 percent higher at $1,277.60 an ounce.
The United States has "taken an aggressive move by not extending the (sanctions) waivers. There are some geopolitical risks and a bit of safe-haven demand" for gold, said Bob Haberkorn, senior market strategist at RJO Futures.
A weaker dollar and softer equities were also supporting bullion, he added.
Oil topped $74 a barrel on Monday, the highest since November, as the United States announced a further clampdown on Iranian oil exports. O/R
Wall Street equities were trading lower, weighed down by technology shares, which helped bullion accumulate safe-haven bids. MKTS/GLOB
"There is some risk aversion in the marketplace to start the trading week, as the U.S. is ratcheting up its economic sanctions on Iran," said Jim Wyckoff, senior analyst with Kitco Metals in a note.
The dollar .DXY was down 0.2 percent, making bullion cheaper for investors holding other currencies.
On the technical front, gold's break below key support levels, including the 100- and 50-day moving averages last week, signaled a further downside to prices, analysts and traders said.
"Technically, the gold bears have the overall near-term technical advantage," Wyckoff said.
Meanwhile, speculators switched to a net short position in COMEX gold in the week to April 16, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. CFTC/
Holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, dropped to 751.68 tonnes on Thursday, the lowest levels seen since Oct. 26. GOL/ETF
Among other metals, silver XAG= rose 0.6 percent to $15.02 per ounce.
Platinum XPT= fell 0.8 percent, to $893.50 per ounce and palladium XPD= slipped 2.8 percent to $1,382.18 per ounce, having earlier climbed to its highest in more than two weeks at $1,429.91 an ounce. `
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Written By: Reuters
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