* Asian shares near 2016 highs, dollar up vs yen
* Technical resistance at $1,260 hurting gold
* Silver slips from 5-1/2 month top, platinum below
$1,000/oz
(Adds trader comment, updates prices)
By A. Ananthalakshmi
SINGAPORE, April 13 (Reuters) - Gold fell from a three-week
high on Wednesday as the dollar regained some ground from the
yen and Asian equities traded near 2016 highs, denting the
metal's safe-haven appeal.
Surprisingly upbeat Chinese trade data offered hope the
Asian giant was finally stabilising, underpinning risk
sentiment. The Japanese yen slid from recent peaks against the
greenback. USD/ MKTS/GLOB
Spot gold XAU= was down 0.5 percent at $1,249.40 an ounce
as of 0711 GMT, after earlier hitting a session low of
$1,246.55. The metal had jumped to a three-week high of
$1,262.60 on Tuesday.
"Gold is tracking the dollar-yen move, but there is still
some upside," said a Sydney-based bullion trader. "There are
enough concerns about the economy and the timing of U.S. rate
hikes to support gold at these levels."
For the time being, however, gold might see some technical
resistance.
"It certainly seems like $1,260 is going to be fairly stiff
resistance for the time being, with no less than five attempts
to break and hold above there over the course of yesterday,"
said MKS Group trader Alex Thorndike.
"At this juncture we feel the yellow metal may pause for now
and potentially retrace somewhat. $1,240-45 should provide
decent support, while $1,260-63 looks a decent barrier for now."
Gold had its best quarter in 30 years in the three months to
March, with the dollar on the back foot as investors scaled back
expectations of rate hikes by the Federal Reserve. The dollar
has shed over 4 percent versus a basket of currencies this year.
Fed policymakers signalled in December that four hikes would
probably be needed this year, though they cut their view in
March to two rate increases for 2016.
Markets are factoring in only one rate hike. But comments
from two Fed officials on Tuesday added to the uncertainty.
The Fed could reasonably raise interest rates two or three
times this year, San Francisco Fed President John Williams said,
adding that he does not expect much market turmoil when it does.
The Fed will likely have to raise interest rate around four
times this year, Richmond Fed President Jeffrey Lacker said on
Tuesday.
Among other precious metals, silver XAG= fell 0.6 percent
to $16.05 after hitting a 5-1/2-month high of $16.21 on Tuesday.
Platinum XPT= dipped below $1,000 an ounce after climbing to a
one-month high overnight.
PRICES AT 0711 GMT
Metal Last Change Pct chg
Spot gold 1249.4 -6.16 -0.49
Spot silver 16.058 -0.102 -0.63
Spot platinum 990.24 -5.75 -0.58
Spot palladium 546.74 2.24 0.41
Comex gold 1251.3 -9.6 -0.76
Comex silver 16.08 -0.142 -0.88
COMEX gold and silver contracts show the
most active months