PRECIOUS-Gold eases to 1-week low as trade optimism lifts risk sentiment
* Gold may revisit April 4 low of $1,280.59 - analyst
* Asian shares near nine-month high (Adds comment, updates prices)
By Sethuraman N R
Spot gold XAU= edged 0.3 percent lower to $1,286.74 perounce as of 0930 GMT, having touched $1,285.48, its lowest sinceApril 5. U.S. gold futures GCcv1 fell 0.4 percent to $1,289.70an ounce.
"Gold has clearly lost the upward trajectory that it was on,trying to find new supportive catalysts. We've seen continuedpositive murmuring on the trade negotiations in recent days.That's obviously a headwind for safe-haven gold," CapitalEconomics analyst Ross Strachan said.
U.S. Treasury Secretary Steven Mnuchin said he hopedU.S.-China trade talks were approaching a final lap.
That, combined with strong Chinese export and euro zoneindustrial production data on Friday, has lifted globalequities, bund yields and the euro. MKTS/GLOB
"The continued positiveness coming out of equity markets isacting as a drag on gold prices as people have liquidated theirpositions," Strachan said.
Gold fell below $1,300 last week and that was seen as anegative bias in charts used by technical traders, analysts andtraders said.
The yellow metal may now revisit its April 4 low of$1,280.59 per ounce, Reuters technical analyst Wang Tao said. TECH/C
"Gold is trading directly on the technically important100-day moving average at $1,288 per troy ounce. This line hasheld firm several times in the past two weeks," Commerzbankanalysts said in a research note.
"However, if gold were to dip below it this time technicalfollow-up selling would probably ensue, exerting furtherpressure on the price."
A stronger U.S. economic picture of late has also dampenedthe appeal of the non-yielding metal, with U.S. reports onFriday showing import prices surpassed expectations and consumersentiment seen stabilising.
In other metals, increased inflows were observed intoplatinum, while palladium saw outflows for a seventh consecutiveweek, analysts at Societe Generale wrote in a note.
Spot platinum XPT= rose 0.3 percent to $888.25 per ouncewhereas palladium XPD= fell 0.4 percent to $1,366.20 perounce.
Silver XAG= was 0.1 percent lower at $14.94 an ounce. (Reporting by Nallur Sethuraman in Bengaluru; Editing by DaleHudson) ((Sethuraman.NR@thomsonreuters.com; (Within U.S.1-651-848-5832, Outside U.S. +91 8067496031); Reuters Messaging:firstname.lastname@example.org))
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