PRECIOUS-Gold slips as dollar gains on global trade jitters

Reuters

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    * U.S. dollar hits near eight-week peak
    * Platinum at a more than one-month low

 (Updates prices)
    By Swati Verma
    Feb 11 (Reuters) - Gold prices fell on Monday as investors
preferred the safety of the dollar in the face of mounting
concerns that the U.S.-China trade dispute could slow global
growth.
    Spot gold  XAU=  was 0.4 percent lower at $1,308.18 per
ounce at 2:13 p.m. EST (1913 GMT). 
    U.S. gold futures  GCv1  settled down 0.5 percent at
$1,311.9 per ounce.
    "The big factor here is the strengthening of the U.S.
dollar," which is being supported by the trade dispute, said
Bart Melek, head of commodity strategies at TD Securities in
Toronto.
    "Any sort of a lack of agreement between the United States
and China weakens the global emerging market currencies and that
means, in relative terms, the U.S. dollar does better, which is
negative for gold," he said.
    Trade talks between Washington and Beijing are set to resume
this week with a delegation of U.S. officials traveling to China
for the next round of negotiations.  urn:newsml:reuters.com:*:nL3N20614C
    But U.S. President Donald Trump last week said he did not
plan to meet with China's President Xi Jinping before the March
1 deadline, dampening hopes that a trade pact might be reached
quickly.
    The dollar index  .DXY  was at its highest in nearly eight
weeks, which could dent demand for the metal amongst holders of
other currencies.  FRX/ 
    "Gains in U.S. and world stock markets are also a bearish
element for the safe-haven metals," Jim Wyckoff, senior analyst
at Kitco Metals, wrote in a note to clients.  MKTS/GLOB 
    Gold could be vulnerable to more corrections if the dollar
strengthens further, analysts said.
    "With U.S. employment numbers still quite strong and people
moving into dollar for safe-haven purposes, there is really no
good reason why gold should take off much higher," TD's Melek
said.
    But the yellow metal held above the key $1,300-per-ounce
level, supported by uncertainties surrounding the U.S. Federal
Reserve's monetary policy and the possibility of another U.S.
government shutdown, analysts said.
    Gold prices should remain rangebound until there is clarity
on the trade front and a government shutdown, Oanda analyst
Edward Moya said in a research note.    
    Meanwhile, platinum  XPT=  fell 1.8 percent to $783.50 per
ounce, having earlier touched its lowest level since Jan. 2 at
$779.50.
    "The spot price of platinum breaking through the $800 level
has forced some hedge funds to head for the exit," Walter
Pehowich, executive vice president of investment services at
Dillon Gage Metals, said in a note.
    "With a lack of any good news to support a rally in this
market, I expect the sell off to continue." 
    Palladium  XPD=  slid 1.4 percent to $1,383 per ounce, while
silver  XAG=  fell nearly 1 percent to $15.67.

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GRAPHIC-Gold vs U.S. dollar    https://tmsnrt.rs/2UMR3Lk
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 (Reporting by Swati Verma, Arpan Varghese and Eileen Soreng in
Bengaluru; editing by David Gregorio and Lisa Shumaker)
 ((Swati.Verma@thomsonreuters.com; +1-651-848-5832, outside
N.America, +91-80-6749-6356/1298; Reuters Messaging:
swati.verma.thomsonreuters.com@reuters.net))

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