* Speculators switched to net short in COMEX gold last week- CFTC
* SPDR gold holdings fall to lowest in over 6 months
* Brent prices jump 3 percent to highest since Nov (Updates prices)By Sethuraman N RApril 22 (Reuters) - Gold inched up on Monday, moving awayfrom a near 4-month trough touched in the previous session,drawing support from a drop in equities and a jump in crude oilprices.Spot gold was up 0.2 percent at $1,277.67 per ounce,by 1228 GMT, having touched $1,270.63 on Thursday - its lowestsince Dec. 27. The market was closed on Friday.
Asian shares slipped, weighed down by underperformingChinese stocks, while oil prices rallied on news the UnitedStates is likely to ask all importers of Iranian oil to endtheir purchases or face sanctions. Higher oil prices were influencing gold, said Jigar Trivedi,a commodities analyst at Mumbai-based Anand Rathi Shares & StockBrokers."While the intensity of correlation between oil and gold hasreduced, buying in one asset class is supporting the other,"Trivedi said.
Gold is closely correlated to oil as the metal is often seenas a hedge against oil-led inflation.However, a firmer dollar capped gold's gains after datashowed the United Sates' economic growth may have picked up inthe first quarter after a false start. U.S. retail sales increased by the most in 1-1/2 years inMarch, data showed on Thursday. "The disaster over the weekend in Sri Lanka is providingsome safe-haven demand besides some interest in physical buying,which is also offering support to gold prices," said AfshinNabavi, senior vice president at MKS SA.Gold is considered a safe investment during political oreconomic uncertainties.Attacks on churches and luxury hotels in Sri Lanka on Sundaykilled 290 people and wounded more than 500. Nabavi said strong resistance at $1,280 was capping gold'smove higher, along with a stronger dollar.
Following the Good Friday holiday, markets in Britain,Germany and France remain closed for Easter Monday.
Meanwhile, speculators switched to a net short position inCOMEX gold in the week to April 16, the U.S. Commodity FuturesTrading Commission (CFTC) said on Friday. Holdings of SPDR Gold Trust , the world's largestgold-backed exchange-traded fund, dropped to 751.68 tonnes onThursday, the lowest levels seen since Oct. 26. "Gold is hovering between the 100-day exponential movingaverage around $1,285 and 200-day exponential moving averagearound $1,275, below this we can look for $,1260," Anand Rathi'sTrivedi said.
Elsewhere, silver rose 0.6 percent to $15.02 perounce. Platinum gained 1 percent to $909.25 per ounce and Palladium rose 0.3 percent to $1,425.51 an ounce havingearlier climbed to its highest in more than two weeks at$1,429.91 an ounce.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Speculators switch to a bearish position in gold ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Nallur Sethuraman in Bengaluru, editing by LouiseHeavens and Kirsten Donovan)
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