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PRECIOUS-Gold prices tick up amid weaker dollar


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* Uncertainty around N.Korea-U.S. summit supports gold

* Dollar index pulls back from 2018-high hit overnight

* Platinum up after hitting 5-month low on Wednesday (Adds comment, updates prices)

BENGALURU, May 17 (Reuters) - Gold prices made modest gainson Thursday after touching their lowest level this year in theprevious session, amid geopolitical uncertainty and a slightlyweaker U.S. dollar.

Spot gold XAU= had risen 0.25 percent to $1,293.43 perounce by 0255 GMT, after marking its lowest since Dec. 27 in theprevious session at $1,286.20.

U.S. gold futures GCcv1 for June delivery were 0.1-percenthigher at $1,292.80 per ounce.

The dollar slipped versus major rivals .DXY on Thursdayafter it hit a 2018-peak overnight, while the euro hovered neara five-month low on concerns that political developments inItaly could cause wider disruptions in the common currency bloc. USD/

"The tug-of-war between risk appetite and dollar-strengthwill be key in determining how gold may move. We have alreadyseen some potential safe-haven buying ... given the potentialbreakdown in U.S.-Pyongyang talks, despite a strongergreenback," said OCBC analyst Barnabas Gan.

U.S. President Donald Trump acknowledged on Wednesday it wasunclear if his summit with North Korea would go ahead afterPyongyang threatened to pull out of the unprecedented meeting. urn:newsml:reuters.com:*:nL3N1SN1QK

Gold prices can gain during times of uncertainty as themetal is seen as a safe place to park assets.

Meanwhile, weighing on upward momentum for gold were surgingU.S. bond yields, with the yield on the benchmark 10-year notehitting its highest level since 2011 on signs the economy wasstrengthening. US/

"Further gold weakness cannot be fully discounted, as thestronger U.S. Treasury yields seen could garner more dollarstrength into the month ahead," Gan said.

A stronger dollar makes greenback-denominated gold moreexpensive for holders of other currencies, while higher U.S.bond yields weigh on the appeal of non-yielding bullion.

In other precious metals, silver XAG= was up 0.4 percentat $16.41 an ounce, after touching the lowest in two weeks at$16.17 in the previous session.

Platinum XPT= was up 0.5 percent at $892.30 per ounce,after hitting a five-month low of $883.50 on Wednesday.

Palladium XPD= rose 0.3 percent to $986.15 per ounce.

(Reporting by Apeksha Nair in BengaluruEditing by Joseph Radford) ((Apeksha.Nair@thomsonreuters.com; within U.S. +1 651 848 5832,outside U.S. +91 80 6749 6408/1298; Reuters Messaging:apeksha.nair.thomsonreuters.com@reuters.net))




This article appears in: Stocks , World Markets , Politics


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