PRECIOUS-Gold slips as investors pile into equities

    * World stocks hit record high for second day
    * Concerns over Korea, Hurricane Irma recede
    * Largest gold ETF sees first inflow since Sept. 5
    * GRAPHIC-2017 asset returns:

 (Updates prices)
    By Jan Harvey
    LONDON, Sept 12 (Reuters) - Gold fell to its lowest in more
than a week on Tuesday as easing concerns over North Korea's
nuclear ambitions and the impact of Hurricane Irma tempered
demand for the metal as a haven from risk while the dollar
     World stocks hit record highs for a second straight day on
Tuesday as investors opted for nominally higher risk-assets over
havens such as gold, bonds and the Japanese yen.            
    Spot gold        hit its lowest since Sept. 1 at $1,322.15
an ounce in early trade and was at $1,324.17 at 1120 GMT, down
0.2 percent. On Monday it slid 1.4 percent in its biggest
one-day drop in two months. 
    "The North Korea story has had (an impact) on the price of
gold, but these geopolitical events tend to be quite limited in
time," Natixis analyst Bernard Dahdah said. "The market
accommodates surprisingly quickly when things calm down."
    "It was the weakness of the dollar that was really driving
gold, and the tensions with North Korea," he said. "The rate at
which the dollar can still depreciate is slowing down."
    U.S. gold futures        for December delivery were down
$7.50 an ounce at $1,328.20. 
    The dollar was up 0.1 percent, extending the previous
session's bounce from last week's 2-1/2 year low. European
stocks          rose on Tuesday, and world shares hit another
record high.            
    "North Korean inaction over the weekend took some heat out
of the crisis, with investors becoming a little bit more
comfortable," ANZ said in a note. "Hurricane Irma also caused
less damage than original feared."
    "The market is likely to turn its attention to the Fed, with
speakers now in blackout mode ahead of its policy meeting next
    The Federal Reserve has raised U.S. interest rates twice
this year in response to upbeat growth data and falling
unemployment, but persistently soft inflation data has tempered
expectations for another hike in December.              
    Gold is highly sensitive to rising U.S. interest rates, as
they increase the opportunity cost of holding non-yielding
bullion, while boosting the dollar, in which it is priced.
    Holdings of the world's largest gold-backed exchange-traded
fund, SPDR Gold Shares      , rose 1.2 tonnes on Monday, data
from the fund showed, after three days of outflows.             
    Among other precious metals, silver        was down 0.2
percent at $17.77 an ounce after hitting its lowest since Sept.
1 at $17.67.
    Platinum        was down 0.7 percent at $982.70, while
palladium        was 0.8 percent higher at $939.80 an ounce.

 (Additional reporting by Apeksha Nair in Bengaluru; Editing by
Susan Fenton and Jason Neely)
Our Standards:The Thomson Reuters Trust Principles.

Leave a Reply

Your email address will not be published. Required fields are marked *


2 + six =