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PRECIOUS-Gold climbs to near 3-week high on safe-haven demand

Published 11/04/2016, 10:45 am
Updated 11/04/2016, 10:50 am
© Reuters. PRECIOUS-Gold climbs to near 3-week high on safe-haven demand
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SINGAPORE, April 11 (Reuters) - Gold jumped to its highest in nearly three weeks on Monday as cautiousness in global equities and the dollar underpinned demand for the metal.

FUNDAMENTALS

* Spot gold XAU= rose to $1,247.60 an ounce early on Monday, its highest since March 23. It later pared some gains to trade up 0.4 percent to $1,245.30 an ounce by 0036 GMT, following its best weekly gain in five weeks on Friday.

* The dollar nursed losses against major currencies on Monday. Safe-haven yen was consolidating a week of solid gains that saw it climb to highs not seen since 2014. USD/

* Asian stocks got off to a tentative start on Monday as Japanese markets wobbled. MKTS/GLOB

* Global stocks declined last week on risk-averse sentiment in the market amid weak economic data and uncertainty over U.S. monetary policy.

* Federal Reserve Chair Janet Yellen on Thursday said the U.S. economy is on a solid course and still on track to warrant further interest rate hikes. New York Fed President William Dudley on Friday said the central bank must approach further rate hikes cautiously and gradually because of lingering external risks to the U.S. economy, despite some strength at home and welcome hints of inflation. Higher rates would weigh on gold by lifting the opportunity cost of holding non-yielding bullion. Waning expectations for further rate increases this year helped gold to its best quarter in nearly 30 years in the three months to March.

* Hedge funds and money managers cut their net long positions in gold and silver futures and options in the week to April 5, U.S. Commodity Futures Trading Commission data showed. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.22 percent to 817.81 tonnes on Friday. GOL/ETF

* South Africa's Association of Mineworkers and Construction Union (AMCU) said on Sunday it had agreed to take a new wage offer from Sibanye Gold SGLJ.J and called off a strike. For the top stories on metals and other news, click TOP/MTL or GOL

DATA AHEAD (GMT)

0130 China Producer prices Mar

0130 China Consumer prices Mar

0800 Italy Industrial output Feb

PRICES AT 0036 GMT

Metal

Last

Change Pct chg

Spot gold

1245.3

5.29

0.43 Spot silver

15.391

0.049

0.32 Spot platinum

966.31

4.81

0.5 Spot palladium

540

0.78

0.14 Comex gold

1247.4

3.6

0.29 Comex silver

15.395

0.011

0.07

COMEX gold and silver contracts show the most active months

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