April 18, 2018 / 10:19 AM / 5 months ago

PRECIOUS-Gold advances on technical buying, dollar near 3-week lows

    * Easing political risk as Korea talks announced adds
pressure
    * Analysts looking to see if gold can get to $1,370 and
above 
    * GRAPHIC-2018 asset returns: tmsnrt.rs/2jvdmXl

 (Updates with higher gold prices)
    By Zandi Shabalala
    LONDON, April 18 (Reuters) - Gold prices rose to a one-week
high on Wednesday on technical trading and as the dollar held
near three-week lows even as risk appetite lifted stocks.
    Spot gold        was up 0.3 percent at $1,351.08 per ounce
by 1356 GMT, after touching its highest since April 11, while
U.S. gold futures         for June delivery were 0.5 percent
higher at $1,356.
    Gold broke above $1,350, a significant resistance level for
gold, said Activtrades chief analyst Carlo Alberto De Casa, and
a close above this level would confirm positive momentum for
gold.
    "If gold can remain above the $1,350 level for a couple of
days there is a good chance to see it jumping up to $1,400," he
said.
    Kitco Metals senior analysts Jim Wyckoff said the chart
positions for gold and silver are "tilted in favour of the
bulls, which is inspiring technically-based buying interest at
mid-week".
    The dollar index       , which measures the greenback
against a basket of currencies, eased towards a three-week low
reached on Tuesday. A weaker greenback makes dollar-priced gold
cheaper for holders of other currencies.       
    Losses in the dollar were capped by a weaker pound which
fell to a four-day low on Wednesday after British inflation
unexpectedly cooled to a one-year low in March.             
    Robust earnings from Netflix         , Morgan Stanley       
and Goldman Sachs        this week capped gains in non-interest
yielding gold and lifted stocks.            
    The sterling tumbled after British inflation unexpectedly
cooled to a one-year low in March, according to figures that may
raise doubt over bets that the Bank of England will raise
interest rates in May.             
    In physicals, Sri Lanka imposed a 15 percent tax on imported
gold with effect from Wednesday to prevent illegal smuggling of
the metal from the island nation, a finance ministry official
said.             
    Meanwhile, spot silver        climbed 1.8 percent to $17.05
per ounce, after touching its highest since Feb. 2 at $17.14 an
ounce.
    Platinum        gained 1.2 percent to $941.10 per ounce,
after hitting a three-week high of $945.10. 
    Palladium        rose 2.2 percent to $1,034.80 per ounce,
having touched its highest since March 1.
    The metal used in autocatalysts in cars was spurred by fears
of Russian supply disruptions after the United States' recent
imposition of sanctions on shareholders of Nornickel, the
world's largest producer.
    "We believe the recent rally is mainly driven by speculation
and the gains are on a weak footing," Julius Baer said, adding
that sanctions were unlikely to be extended to Nornickel itself
because the United States needs palladium.

 (Additional reporting by Eileen Soreng and Apeksha Nair in
Bengaluru
Editing by Susan Fenton and Louise Heavens)
  
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