PRECIOUS-Gold dips on firm dollar amid hopes for easing U.S.-N.Korea tensions
* Gold on track to post its third weekly fall
* Spot gold may fall more into $1,307-$1,312/oz range -technicals
* Investors await U.S. non-farm payroll data due later inthe day (Adds comments, updates prices)
March 9 (Reuters) – Gold prices extended losses into a thirdsession on Friday as the dollar strengthened against the yen onhopes of easing tensions between the United States and NorthKorea and ahead of U.S. non-farm payroll data later in the day.
U.S. President Donald Trump said on Thursday he was preparedto meet North Korean leader Kim Jong Un for the first U.S.-NorthKorea summit, marking a potentially dramatic breakthrough innuclear tensions with Pyongyang. urn:newsml:reuters.com:*:nL2N1QQ239
“We are seeing reactions to the Trump-Kim Jong Un’spotential for a discussion prompting a risk-on trade and that isputting some pressure on safe haven assets,” said a Hong Kongbased trader.
Spot gold XAU= was down 0.3 percent at $1,317.41 per ounceat 0405 GMT and was on track to post its third weekly decline.U.S. gold futures GCcv1 were down 0.3 percent at $1,318.1.
Against the yen, the dollar rose 0.4 percent to 106.66 yenJPY= , inching away from a low of 105.24 yen on March 2, thegreenback’s weakest level since November 2016. USD/
The U.S. dollar had tumbled to 16-month lows against thesafe-haven yen late last week as fears of a trade war rattledmarkets after Trump announced his plan for imposing tariffs onimported steel and aluminium.
“We are moderately bearish on gold prices, and see therising yield environment as a headwind,” analysts at SocieteGenerale said in a note.
“That being said, we think U.S. rate hikes are alreadypriced in for 2018, and ETF holdings have been very stable inrecent history,” analysts said, adding that they see gold pricesat $1,275 per ounce in six months.
Spot gold may fall more into a range of $1,307-$1,312 perounce, as it has pierced below a support at $1,317, according toReuters technical analyst Wang Tao. urn:newsml:reuters.com:*:nL4N1QR1YH
Investors were waiting on the release of the U.S. jobsreport later on Friday that will include data on non-farmpayrolls and average hourly earnings.
“I think today the market might get a little short, feelingthat we will have good numbers and that risk is on,” the HongKong based trader said.
In other precious metals, silver XAG= fell 0.5 percent to$16.41 per ounce.
Platinum XPT= dipped 0.6 percent to $946.50 per ounce,while palladium XPD= declined 0.3 percent to $974 per ounce. (Reporting by Eileen Soreng in BengaluruEditing by Joseph Radford and Richard Pullin) ((email@example.com; Within U.S. +1 651 8485832, Outside U.S. +91 80 6749 6131; Reuters Messaging:firstname.lastname@example.org))