PRECIOUS-Gold slides after strong US consumer spending data

* Palladium has shed about $260/ozfrom document excessive hit in March

* U.S. client spending rose most in over 9-1/2 years final month

* SPDR gold holdings at lowest since Oct. 19

* Gold specs increase web brief positions in week to April 23 (Provides feedback, updates costs)

By Ok. Sathya Narayanan

April 29 (Reuters) – Palladium on Monday slumped about 7 %, its largest each day share drop in over two-years, whereas gold additionally fell as sturdy U.S. information improved traders’ urge for food for riskier property forward of the U.S. Federal Reserve coverage assembly.

Spot palladium slid about 6.7 % to $1,366.01 per ounce as of 1:57 p.m. EDT (1757 GMT).

It fell as a lot as 7 % to a low of $1,361.5 earlier within the session, its largest sooner or later decline since January 2017.

“This dramatic sell-off is a bit technical in nature as we began sliding by way of some key help ranges as an extension of the draw back with exasperated lengthy liquidation out there,” mentioned David Meger, director of metals buying and selling at Excessive Ridge Futures.

The steel, primarily used to curb dangerous emissions from car engines, has plummeted about 16 % from a document excessive of $1,620.52 hit final month.

Spot gold fell zero.5 % to $1,279.32 per ounce, whereas U.S. gold futures settled about zero.6 % decrease at $1,281.50 an oz.

“The equities markets, no less than within the U.S., are at new current highs and we’re seeing much less want for the safe-haven standing of the steel,” Meger mentioned.

International shares edged larger because the S&P 500 touched an intraday document after information confirmed U.S. client spending elevated by probably the most in additional than 9-1/2 years final month.

The current uplift in equities has led traders to chop their publicity to gold, with holdings of SPDR Gold Belief GLD, the world’s largest gold-backed exchange-traded fund, falling to its lowest since Oct. 19 at 746.69 tonnes on Friday.

Holdings have fallen by over three % for the reason that starting of this month.

Speculators additionally elevated their bearish wagers on COMEX gold within the week to April 23, the U.S. Commodity Futures Buying and selling Fee (CFTC) mentioned on Friday.

“You’ve acquired lots of people taking income after a three-day run-up. However, lots of people are going to take it straightforward as we now have the Ate up Wednesday,” mentioned Michael Matousek, head dealer at U.S. International Traders.

“That’s going to be huge and everybody goes to take a giant place earlier than that in case one thing obscure comes out.”

The Fed will start its two-day coverage assembly on Tuesday. The central financial institution final month deserted any rate of interest hikes this 12 months.

Elsewhere, silver fell 1.1 % to $14.90 per ounce, whereas platinum dipped zero.2 % to $893. (Reporting by Ok. Sathya Narayanan, Swati Verma and Diti Pujara in Bengaluru; Modifying by Tom Brown)

Our Requirements:The Thomson Reuters Belief Ideas.

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