PRECIOUS-Gold firms as stocks slide, holds narrow range
* China-U.S. trade tension rises ahead of G20 meeting
* SPDR Gold Trust holdings rose on Monday (Updates prices)By Sumita LayekBENGALURU, Nov 20 (Reuters) - Gold firmed near a two-weekpeak on Tuesday, as a slide in stock markets offset an uptick inthe dollar, with the metal holding a tight range in light tradeahead of the U.S. Thanksgiving holiday.Spot gold rose 0.1 percent to $1,225.56 per ounce at1237 GMT, having earlier hit its highest since Nov. 8 at$1,226.56.U.S. gold futures inched 0.1 percent higher to$1,226.10."(Trade) is relatively sideways at the moment... gold doesnot have its own momentum behind it, it is simply responding toexternal forces rather than any energy and vigour of its own,"said Ross Norman, chief executive officer of Sharps Pixley."We see gold trading in a $1,215-$1,240 range for theremainder of the year."
The dollar index , which measures the greenbackagainst major currencies, rose from its weakest in two weeksafter cautious comments by Federal Reserve officials over theglobal outlook and weak U.S. economic data raised doubts on thepace of future rate hikes.The Fed has raised rates three times this year, making itmore expensive to hold non-interest-bearing gold. While a fourthrate hike is expected next month and three more next year, astrong majority of economists polled by Reuters say the risk isthat the Fed will slow that pace down. "The Feds have changed the landscape to a more dovishterrain suggesting that they too are turning a little bitrisk-averse," Stephen Innes, APAC trading head at OANDA inSingapore, said in a note.A downtrend in global stocks over the past two monthstriggered limited flows into bullion, a traditional safe storeof value in times of economic or political uncertainty, butgains were held in check as investors also preferred the safetyof the dollar. "Trade tensions remain heightened between the U.S. andChina, global equities are under pressure, while Brexitnegotiations continue to create uncertainty across markets,keeping gold's safe-haven status intact," traders at MKS PAMPsaid in a note.Investors are now keeping a close eye on a G20 summit inArgentina scheduled for later this month, when U.S. PresidentDonald Trump is expected to meet Chinese President Xi Jinping todiscuss their trade dispute.
While both leaders expressed optimism about resolving theirrespective issues ahead of the meeting, a top Chinese diplomatin veiled criticism of Washington said on Monday that the APECsummit's failure to agree on a communique resulted from certaincountries "excusing" protectionism. Meanwhile, holdings at SPDR Gold Trust , the world'slargest gold-backed exchange-traded fund, rose 0.16 percent to760.86 tonnes on Monday. Among other precious metals, silver was flat at$14.42 an ounce, after hitting $14.48, its highest since Nov. 8.Palladium slipped 0.6 percent to $1,155.32 per ounce,while platinum fell 0.7 percent to $847.49 per ounce. (Reporting by Sumita Layek and Eileen Soreng in Bengaluru;Editing by Susan Fenton and Louise Heavens)
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