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PRECIOUS-Gold rallies 1.4 pct as potential North Korea talks hurt dollar

Published 2018-03-06, 01:51 p/m
© Reuters.  PRECIOUS-Gold rallies 1.4 pct as potential North Korea talks hurt dollar
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* Dollar slips further as North Korea hints at talks

* Trump faces pushback on tariff plans

* GRAPHIC-2018 asset returns: http://tmsnrt.rs/2jvdmXl (Recasts, updates prices, adds comment, adds NEW YORK todateline)

By Renita D. Young and Jan Harvey

NEW YORK/LONDON, March 6 (Reuters) - Gold prices rose morethan 1 percent on Tuesday as the U.S. dollar slid after NorthKorea signaled that it is open to nuclear talks and investorsworried about aggressive U.S. trade policy.

The greenback hit a two-week low as traders bet on riskiercurrencies and assets on news North and South Korea would holdtheir first summit in more than a decade and after the Southsaid the North was willing to discuss denuclearization with theUnited States. gold XAU= gained 1.1 percent at $1,334.79 per ounceby 1:33 p.m. EST (1833 GMT), while U.S. gold futures GCcv1 forApril delivery settled up $15.30, or 1.2 percent, at $1,335.20.

"As a result of the weaker dollar, gold - together with oiland industrial metals - has benefited from the North Koreannews," said Saxo Bank's Ole Hansen. "This (is) despite thepotential for lowering the geopolitical risk should we movetowards a denuclearized Korean peninsular."

Gold prices rose 1.4 percent to $1,338.49 per ounce, theirhighest since Feb. 26, surpassing a key level. "Gold brokethrough the 50-day moving average at $1,329, and probablytriggered some buy stops," said Phillip Streible, seniorcommodities strategist at RJO Futures.

Resistance is around the $1,350-$1,357 per ounce range, saidForex.com technical analyst Fawad Razaqzada. "A break above thiszone is still required before we turn decidedly bullish on goldagain."

Stocks fell in the United States and edged higher in Europe,but a global gauge of major equity markets was up, boosted bygains in Asia after stocks were battered Monday on concerns overa global trade war. MKTS/GLOB FRX/ that proposed tariffs by the Trump administrationcould touch off a trade war have eased somewhat. Still,uncertainty has helped to keep the dollar on the back foot andshored up interest in gold as a safe haven. Treasury Secretary Steven Mnuchin said the Trumpadministration will try to keep any new steel and aluminumtariffs from hurting the economy. other precious metals, silver XAG= increased 2.1percent at $16.77 an ounce after hitting $16.86, a 2-1/2-weekhigh. Platinum XPT= rose 0.8 percent at $968.70 per ounce.

Palladium XPD= gained 0.4 percent at $986.60 per ounce,earlier hitting a three-week low of $974. The autocatalyst metalhas run into strong support at $975 an ounce, a key retracementof its Jan 2016-Jan 2018 rally, after falling more than 5percent last week.

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