PRECIOUS-Gold advances on technical buying, light safe haven demand

By Kitco News / April 18, 2018 / www.kitco.com / Article Link


* Safe-haven demand supporting gold -traders
* Analysts looking to see if gold can get to $1,370 andabove


* GRAPHIC-2018 asset returns: (Recasts; updates prices, headline; adds comment, NEW YORKdateline, byline)By Renita D. Young and Zandi ShabalalaNEW YORK/LONDON, April 18 (Reuters) - Gold prices rose to aone-week high on Wednesday on technical trading and somesafe-haven demand even as the dollar held on to gains and stocksrose on risk appetite.Spot gold was up 0.2 percent at $1,349.71 per ounceby 1:48 p.m. EDT (1748 GMT), after touching its highest sinceApril 11, while U.S. gold futures for June deliverysettled up $4, or 0.3 percent, at $1,353.50 per ounce.


"We are up on safe-haven demand and a general commoditiesmove," said George Gero, managing director of RBC WealthManagement, adding concerns over U.S. sanctions on Russia stillremain.Gold broke above $1,350, a significant resistance level forgold, said Activtrades chief analyst Carlo Alberto De Casa, anda close above this level would confirm positive momentum forgold."If gold can remain above the $1,350 level for a couple ofdays there is a good chance to see it jumping up to $1,400," hesaid.Kitco Metals senior analysts Jim Wyckoff said the chartpositions for gold and silver are "tilted in favor of the bulls,which is inspiring technically based buying interest atmid-week."The dollar index , which measures the greenbackagainst a basket of currencies, eased toward a three-week lowreached on Tuesday. A weaker greenback makes dollar-priced goldcheaper for holders of other currencies. Dollar losses were capped by a weaker pound which fell to afour-day low on Wednesday after British inflation unexpectedlycooled to a one-year low in March.Robust corporate earnings this week capped gains innon-interest yielding gold and lifted stocks. In physicals, Sri Lanka imposed a 15 percent tax on importedgold with effect from Wednesday to prevent illegal smuggling ofthe metal from the island nation, a finance ministry officialsaid. Spot silver climbed 2.7 percent at $17.19 per ounce,after touching its highest since Feb. 1 of $17.26.Platinum gained 0.3 percent at $938.50 per ounce,after hitting a three-week high of $948.70.


Palladium rose 2.6 percent to $1,036 per ounce,having touched its highest since Feb. 28, $1,046.20.Palladium prices rose on fears of Russian supply disruptionsafter the recent U.S. sanctions on shareholders of Nornickel,the world's largest producer. "We believe the recent rally is mainly driven by speculationand the gains are on a weak footing," Julius Baer said, addingthat sanctions were unlikely to be extended to Nornickel itselfbecause the United States needs palladium. (Additional reporting by Eileen Soreng and Apeksha Nair inBengaluru; Editing by Louise Heavens and Richard Chang)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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