REFILE-PRECIOUS-Gold edges down on stronger dollar, but geopolitical tensions support

April 10 Gold inched down on Monday on a
stronger dollar, moving away from a 5-month high hit in the
previous session, although geopolitical tensions continued to
buoy safe-haven demand for the precious metal. 
    Top aides to U.S. President Donald Trump differed on Sunday
on where U.S. policy on Syria was headed after last week's
attack on a Syrian air base, while U.S. Secretary of State Rex
Tillerson warned the strikes were a warning to other nations,
including North Korea.                         
    Spot gold        was down 0.1 percent at $1,252.20 per ounce
by 0319 GMT, while U.S. gold futures         had dropped 0.2
percent to $1,254.30.
    Spot gold hit its highest since Nov. 10 at $1,270.46 on
Friday and crossed the 200-day moving average. But, it failed to
close above that key resistance level.
    The dollar index        on Monday rose as much as 0.15
percent to over 3-week highs at 101.340.
    "Somehow gold is keeping its $1,200-$1,250 range intact even
thought it keeps rising and falling," said Mark To, head of
research at Hong Kong's Wing Fung Financial Group.
    "I don't think it can have a further upside as even though
the (U.S. interest) rate hike expectations have come down; the
direction of hikes and monetary tightening are quite clear."
    The U.S. Federal Reserve might in the future avoid raising
interest rates at the same time that it begins the process of
shrinking its $4.5 trillion bond portfolio, prompting only a
"little pause", New York Fed President William Dudley said on
Friday.             
    Gold's safe-haven appeal has been bolstered by mounting
geopolitical tensions, with a U.S. official telling Reuters on
Saturday that a U.S. Navy strike group will be moving towards
the western Pacific Ocean near the Korean peninsula as a show of
force.
    The bullish sentiment on gold was also underpinned by U.S.
Commodity Futures Trading Commission data that showed
speculators raising their net long position in COMEX gold for
the third straight week in the week to April 4.             
    However, Reuters technical analyst Wang Tao said spot gold
may fall to $1,241 per ounce, as suggested by its wave pattern
and a Fibonacci retracement analysis.             
    Meanwhile, spot silver        dropped 0.2 percent to $17.92
an ounce, after hitting its best since Feb. 27 at $18.47 in the
previous session.
    Platinum        declined 0.5 percent to $947 an ounce, while
palladium        fell 0.7 percent to $796.10.

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