PRECIOUS-Gold edges up from one-week low after U.S. dollar dips

Reuters

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    * Gold turns higher after U.S. dollar drops on producer 
numbers 
    * Speculators up long COMEX gold position, first time in 8 
weeks 
    * Palladium hits lowest since Oct. 31 
 
 (New throughout, updates prices, market activity and comments, 
second byline and NEW YORK dateline) 
    By Renita D. Young and Maytaal Angel 
    NEW YORK/LONDON, Nov 14 (Reuters) - Gold rose slightly on 
Tuesday, as a weakening U.S. dollar and sluggish stock market 
helped pull the precious metal off a one-week low hit in early 
trade, while traders also said uncertainty over the fate of a 
U.S. tax cut prompted some safe-haven buying of gold. 
    The U.S. dollar fell against a basket of major 
currencies. urn:newsml:reuters.com:*:nL1N1NK0UP  .DXY  A weaker dollar boosted gold, 
making the dollar-denominated commodity less expensive to 
holders of other currencies. 
    Spot gold  XAU=  was up 0.34 percent at $1,281.94 per ounce 
by 1:50 p.m. EST (1850 GMT), bouncing off a one-week low of 
$1,270.56 hit in earlier trade. U.S. gold futures  GCcv1  for 
December delivery settled up $4, or 0.3 percent, at $1,282.90 
per ounce.  
    "The overall equity markets are seeing a little weakness and 
more diversification into safe havens like gold," said Dan 
Hussey, senior market strategist at RJO Futures in Chicago, 
adding gold prices could target $1,350, in the short term. 
    U.S. stock indexes were lower after GE shares plunged for 
the second straight day and a drop in oil prices hit energy 
stocks.  urn:newsml:reuters.com:*:nL3N1NK5YG  .N  
    Worries about Republican tax plans and the economy's ability 
to deal with more interest rate hikes dented appetite for assets 
perceived as risky and boosted gold's appeal as a safe-haven, 
traders said. 
    Gold touched a session low of $1,270.56, its lowest since 
Nov. 6, after U.S. Treasury yields touched fresh highs as 
investors priced in a rate hike next month. Higher bond yields 
reduce gold's appeal.  
    On Monday, Congressional Republicans pushed ahead with a 
proposed U.S. tax code overhaul, but risks lay ahead with major 
intra-party disputes unsettled. A failed tax overhaul would hit 
risk appetite and benefit gold.  urn:newsml:reuters.com:*:nL1N1NJ19R    
    Four of the world's top central bankers promised to keep 
openly guiding investors about future policy moves as they 
slowly withdraw the huge monetary stimulus rolled out during the 
financial crisis.  urn:newsml:reuters.com:*:nL8N1NK41P 
    Elsewhere, hedge funds and money managers raised their net 
long position in COMEX gold by 7,027 contracts to 173,562 
contracts in the week to Nov. 7, U.S. Commodity Futures Trading 
Commission data showed Monday.  urn:newsml:reuters.com:*:nL1N1NJ1T2     
    That marked the first time speculators raised their net long 
position in eight weeks. 
    Among other precious metals, silver  XAG=  was up 0.1 
percent at $17.05 per ounce, while platinum  XPT=  was down 0.5 
percent at $927. Palladium  XPD=  was down 0.48 percent at $985 
an ounce, recovering from a two-week low of $974.97 hit earlier 
in the session. 
 
 (Additional reporting by Vijaykumar Vedala in Bengaluru; 
editing by Mark Heinrich and David Gregorio) 
 ((Renita.Young@tr.com; +1-646-223-8699)) 
 
Keywords: GLOBAL PRECIOUS/  
     

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