PRECIOUS-Gold slips to over two-week low as stronger dollar, stocks weigh

* Dip beneath $1,266 may set off additional gold decline -analyst

* Fed minutes due on Wednesday

* Greenback index close to one-month excessive (Provides recent feedback, updates costs)

By Brijesh Patel

Might 21 (Reuters) – Gold costs dropped to a greater than two-week low on Tuesday, as traders opted for the greenback and improved urge for food for riskier belongings dented the enchantment of bullion, whereas markets awaited the discharge of minutes from the U.S. Federal Reserve.

Spot gold slipped zero.four% to $1,272.55 per ounce as of 10:50 a.m. EDT (1450 GMT), having touched its lowest since Might three at $1,268.97 earlier within the session.

U.S. gold futures have been additionally down zero.four% at $1,272.10.

“One large purpose is that the U.S. greenback stays fairly sturdy. What we’re seeing, in a wierd means, cash is flowing in direction of the greenback as a safe-haven,” stated Bart Melek, head of commodity methods at TD Securities in Toronto.

“Additionally, we have now little little bit of danger urge for food on the inventory futures, so much less of a purpose to enter gold as a hedge,” he added.

The greenback index climbed to its highest in almost a month, supported by larger U.S. yields and as fears of the financial fallout from the U.S.-China commerce row prompted traders to decide on the security of the U.S. unit over bullion.

Gold is often used as a protected retailer of worth throughout instances of uncertainty, nevertheless, traders are preferring the greenback as they did final 12 months in the course of the U.S.-China commerce spat.

In the meantime, fairness markets world wide gained momentum after america quickly relaxed curbs on China’s Huawei Applied sciences, easing issues over an additional escalation within the U.S.-China commerce warfare.

Buyers now await Fed minutes due on Wednesday, which is anticipated to offer insights into the Might 1 central financial institution assembly through which policymakers determined to maintain rates of interest regular and signalled little urge for food to regulate them any time quickly.

“Not a lot is anticipated to occur on the coverage facet. I feel they could speak about potential draw back dangers from commerce tensions however doesn’t count on any vital and credible statements pointing to a price minimize this 12 months,” Melek stated.

On Monday, Fed Chair Jerome Powell stated that it was untimely to determine the impression of commerce and tariffs on the trajectory of financial coverage, as a substitute pointing current financial knowledge pointed in direction of a wholesome provide facet.

“From a technical perspective, a primary constructive sign (for gold) can be a restoration to $1,290, whereas a fall beneath the current low of $1,266 may open area for an additional decline,” stated ActivTrades analyst Carlo Alberto De Casa.

Amongst different treasured metals, silver eased zero.1% to $14.44 an oz.

Platinum rose zero.three% to $813.90 an oz and palladium was principally unchanged at $1,328.70. (Reporting by Brijesh Patel in Bengaluru Modifying by Marguerita Choy)

Our Requirements:The Thomson Reuters Belief Ideas.

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