PRECIOUS-Gold drops to four-month low on stronger dollar, stocks

* Gold down practically 6 pct from Feb highs

* Silver drops to close four-month low

* Platinum off two-week highs hit within the earlier session

* GRAPHIC-2019 asset returns: (Updates costs)

By Brijesh Patel

April 23 (Reuters) – Gold costs slipped to a close to four-month low on Tuesday because the U.S. greenback gained and buyers sought out riskier property, dampening the safe-haven steel’s attraction.

Spot gold was down zero.three % at $1,271.36 per ounce as of 1:48 p.m. EDT (1748 GMT), after falling to its lowest stage since Dec. 26 at $1,265.90 earlier within the session.

U.S. gold futures settled zero.three % decrease at $1,273.20 an oz..

“Gold merchants are on the sidelines due to the power within the greenback, inventory and bond markets,” mentioned George Gero, managing director at RBC Wealth Administration.

“Gold (market) is taking a again seat, ready for one thing stable like inflation numbers or some political modifications within the U.S.; till then, costs are anticipated to commerce within the decrease ranges.”

Denting attraction for bullion, the greenback index held close to a three-week excessive as a drop in market volatility boosted demand for riskier property, with greater U.S. bond yields additionally providing assist to the U.S. forex.

Additionally, U.S. shares had been buying and selling greater on better-than-expected company outcomes.

“There may be risk-on sentiment, and no flight to security now, even with what occurred in Sri Lanka,” mentioned Phillip Streible, senior commodities strategist at RJO Futures.

Assaults on church buildings and luxurious resorts in Sri Lanka on Sunday killed greater than 300 individuals and wounded greater than 500.

Including to gold’s headwinds are better-than-expected financial readings just lately from each the US and China, contributing to the steel’s decline of about 6 % from its 2019 peak touched in February.

Markets are actually awaiting the discharge of U.S. GDP information later within the week for a sign of the power of the world’s largest economic system.

Analysts and merchants mentioned gold’s break beneath key assist ranges final week, together with the 100- and 50-day shifting averages, signalled additional draw back for costs.

Indicative of sentiment, holdings of SPDR Gold Belief, the world’s largest gold-backed exchange-traded fund, had been at their lowest since Oct. 26.

In different metals, silver fell 1.1 % to $14.81 per ounce, after dropping to its lowest stage since Dec. 26 at $14.71.

Platinum was down zero.eight % at $888.25 per ounce, having hit a two-week excessive of $911.75 within the earlier session.

Palladium was barely up zero.1 % at $1,387.51 per ounce, after falling as a lot as three.5 % within the earlier session. (Reporting by Brijesh Patel in Bengaluru; Enhancing by Bernadette Baum and Matthew Lewis)

Our Requirements:The Thomson Reuters Belief Ideas.

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