PRECIOUS-Gold falls to 1-1/2-week low as dollar rises

Reuters

Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

    * Eyes on U.S. consumer inflation data due Thursday 
    * Dollar up after report shows U.S. producer prices rebound 
    * GRAPHIC-2017 asset returns: http://tmsnrt.rs/2jvdmXl 
 
 (Updates prices; adds comment, second byline, NEW YORK 
dateline) 
    By Marcy Nicholson and Jan Harvey 
    NEW YORK/LONDON, Sept 13 (Reuters) - Gold fell to a 
1-1/2-week low on Wednesday, erasing earlier gains as the dollar 
index jumped, though a retreat in global stocks after Tuesday's 
record high prevented deeper losses.  
    Spot gold  XAU=  was down 0.65 percent at $1,322.91 an ounce 
by 2:34 p.m. EDT (1834 GMT), after falling to the lowest since 
Sept. 1 at $1,320.51.  
    U.S. gold futures  GCv1  for December delivery settled down 
0.4 percent at $1,328. 
    "We had a lot of positions put on last week up at the highs, 
and those were weak short-term positions. We've seen a lot of 
them taken off," said Bill O'Neill, partner with Logic Advisors 
in Saddle River, New Jersey, referring to gold's roughly 
one-year high reached last week.  
    "We're not in a fearful flight to haven atmosphere this 
week. We're in a calmer, little more cautious tone and that's 
weighing on gold." 
    The metal's move lower came as the dollar index  .DXY  
turned higher after a report showed U.S. producer prices 
rebounded in August and as traders turned their focus to U.S. 
consumer inflation data.  USD/  
    A firmer dollar makes gold more expensive for holders of 
other currencies.  
    Concerns over North Korea's nuclear ambitions were a key 
factor driving spot gold prices to 13-month highs last week at 
$1,357.54 an ounce. An easing of those worries helped lift 
equities to record highs early this week.   
    Demand for gold, seen as a safe investment in uncertain 
times, revived earlier after U.S. President Donald Trump pledged 
stronger measures against North Korea and Pyongyang promised to 
fight off what it said was the threat of a U.S. invasion. 
 urn:newsml:reuters.com:*:nL4N1LU1D1 
    "This seems to be currency led," Saxo Bank's head of 
commodity research Ole Hansen said, about the gold market's move 
lower. 
    A gauge of global equity markets edged lower.  MKTS/GLOB  
    Investors in gold-backed exchange-traded funds were buying 
as prices fell. Holdings of the largest gold-backed ETF, New 
York's SPDR Gold Trust, rose 0.35 percent on Tuesday from 
Monday.  urn:newsml:reuters.com:*:nENN25W52U 
    Investors awaited U.S. consumer inflation data due on 
Thursday, which should give further clues about the pace of U.S. 
interest rate increases. A run of weak inflation readings has 
lowered expectations the Federal Reserve will raise rates in 
December.  ECONUS  
    Among other precious metals, silver  XAG=  was down 0.8 
percent at $17.77 an ounce.  
    Platinum  XPT=  was 1.2 percent lower at $975.05 an ounce, 
after falling to $973, the lowest since Aug. 28. Palladium 
 XPD=  fell 1.7 percent at $938. 
 
 (Additional reporting by Peter Hobson in London and Apeksha 
Nair in Bengaluru; Editing by Mark Potter and Meredith Mazzilli) 
 ((Marcy.Nicholson@thomsonreuters.com, +1 646 223 6043; Reuters 
Messaging Marcy.Nicholson.ThomsonReuters.com@reuters.net)) 
 
Keywords: GLOBAL PRECIOUS/  
     

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.