PRECIOUS-Gold falls to 4-month low on firm dollar, risk sentiment

* Gold down practically 6 pct from Feb highs

* Platinum off 2-week highs hit within the earlier session

* GRAPHIC-2019 asset returns: (Updates costs)

By Sethuraman N R

April 23 (Reuters) – Gold costs fell on Tuesday to a close to four-month low as a firmer greenback and buyers’ ongoing desire for riskier property took the sheen off the metallic historically seen as a secure haven.

Spot gold was down zero.5 % to $1,267.80 per ounce at 1300 GMT, after falling to its lowest since Dec. 27 at $1,266.50.

U.S. gold futures fell zero.6 % to $1,270 an oz.

“Development worries that had weighed on danger sentiment and supported gold have largely light,” Julius Baer analyst Carsten Menke stated, including sentiment in monetary markets was optimistic.

“That’s why the positioning on gold can also be turning in the direction of the detrimental facet and we have now not seen any inflows in trade traded gold merchandise.”

Knowledge from the U.S. Commodity Futures Buying and selling Fee confirmed speculators switched to a web quick place in COMEX gold within the week to April 16.

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

The greenback index rose zero.three % on Tuesday as a drop in market volatility boosted demand for riskier property, with increased U.S. bond yields additionally providing assist.

Markets want to the discharge of U.S. GDP knowledge later within the week for indications concerning the power of the world’s largest economic system.

Higher-than-expected financial readings from each america and China these days have assuaged investor issues of a pointy international financial slowdown, though weak manufacturing surveys from Asia and Europe have stored a lid on sentiment.

Stronger equities this yr have additionally dented gold’s enchantment, with the metallic now about 6 % under its 2019 peak touched in February.

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

“Gold appears to be like weak to an additional extension decrease by $1,270, opening a check towards the 200-day shifting common at $1,251,” MKS PAMP Group stated in a notice.

In different metals, silver fell 1.three % to $14.79 per ounce. Platinum fell 1.1 % to $885.72 per ounce, having hit a two-week excessive of $911.75 within the earlier session.

Palladium was zero.6 % decrease at $1,378.29 per ounce, after falling as a lot as three.5 % within the earlier session. (Reporting by Nallur Sethuraman in Bengaluru; Modifying by Louise Heavens and Mark Potter)

Our Requirements:The Thomson Reuters Belief Rules.

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