PRECIOUS-Gold falls below trading range, touches 4-month low as dollar firms

Reuters

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    * Gold touches lowest since Aug. 8 at $1,250.51/oz 
    * Platinum on track for biggest weekly loss in nine months 
    * GRAPHIC-2017 asset returns: http://tmsnrt.rs/2jvdmXl 
 
 (New throughout, updates prices, market activity and comment; 
adds second byline and NEW YORK dateline) 
    By Renita D. Young and Jan Harvey 
    NEW YORK/LONDON, Dec 7 (Reuters) - Gold fell 1 percent on 
Thursday, hitting a four-month bottom below its recent trading 
range, as Wall Street stocks rose and the U.S. dollar 
strengthened on optimism about passage of a U.S. tax overhaul. 
    Spot gold  XAU=  dropped 1 percent to $1,251.11 an ounce by 
2 p.m. EST (1900 GMT), bouncing off a four-month low of 
$1,250.51. U.S. gold futures  GCv1  for February delivery 
settled down $13, 1 percent, at $1,253.10 per ounce.  
    Gold broke out of its recent trading range this week after 
slipping below its $1,267 200-day moving average. Since 
mid-October, prices had stayed between $1,265 and $1,300 an 
ounce as investors poured money into the stock market, which hit 
a series of record highs. 
    The stock market gains dicouraged gold buying, as did 
expectations that the Federal Reserve would raise U.S. interest 
rates this month.  
    "From a technical point of view, many traders had 
stop-losses just below $1,262, and today the market is going 
down for this reason," said ActivTrades chief analyst Carlo 
Alberto de Casa. 
    A stronger U.S. dollar also sparked selling of gold, he 
said. The dollar touched a two-week high on Thursday on optimism 
the United States would push through a Republican tax package by 
a Dec. 22 deadline.  MKTS/GLOB   urn:newsml:reuters.com:*:nL1N1O61VT 
    Financial markets will watch U.S. non-farm payrolls data 
Friday, a key barometer of the U.S. economy. Next week the U.S. 
Federal Reserve is expected to announce a rise in interest rates 
and offer guidance on the pace of further increases.  
    "The question is whether this weakness in gold is an image 
of the December 2015 and 2016 charts, where the metals began 
significant rallies after the rate increase announcement, or if 
we are in a different paradigm this time around," Kitco Metals 
Inc said in a note. 
     Rising U.S. interest rates increase the opportunity cost of 
holding non-yielding gold while boosting the dollar, in which it 
is priced.   
    "In 2018, we're looking at a $1,325 price target," said 
George Gero, managing director of RBC Wealth Management in New 
York.  
    "There's a lot to worry about with geopolitical and other 
threats, and a possible stock market correction." 
    Among other precious metals, silver  XAG=  dropped 1.1 
percent to $15.79 an ounce after slipping to its lowest since 
mid-July at $15.72.  
    Platinum  XPT=  slid 1.2 percent at $890.74 an ounce, 
earlier touching its lowest since July 11 at $889.50. The metal 
has fallen nearly 5 percent this week and is on track for its 
biggest weekly loss in nine months. 
    Palladium  XPD=  was up 1.8 percent at $1,011 an ounce. 
 
 (Additional reporting by Apeksha Nair in Bengaluru; editing by 
David Evans and David Gregorio) 
 ((Renita.Young@tr.com; +1-646-223-8699)) 
 
Keywords: GLOBAL PRECIOUS/  
     

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