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Gold prices inch down as dollar recovers from three-week low

Reuters  |  BENGALURU 

By Karen Rodrigues

BENGALURU (Reuters) - Gold prices gave up early gains to trade slightly lower on Tuesday as the U.S. dollar recovered, while lingering U.S.-trade worries and political uncertainty over losses.

Spot gold was down 0.1 percent at $1,256.79 an ounce, as of 0709 GMT, after touching its highest since June 26 at $1,265.87 in the previous session.

U.S. gold futures for August delivery were 0.2 percent lower at $1,257.40 an ounce.

The main was the dollar, said

The dollar's index against a basket of six major currencies was up 0.04 percent at 94.114 after dropping to its lowest since mid-June on Monday.

Investors were also on the sidelines awaiting developments on the trade war between and the United States, said Dick Poon, general manager, Hong Kong Ltd.

Last week, the world's top two economies slapped tit-for-tat duties on $34 billion worth of each other's imports.

"Geopolitical issues such as Britain's confused exit from the and U.S. Trump's assertion that was impeding North Korean progress on denuclearisation have provided some support for gold," said Sharma.

suggested on Monday that China might be seeking to derail U.S. efforts aimed at denuclearising

Britain's ramshackle exit from the could damage economic growth in the euro zone, policymaker said..

Theresa May's quit on Monday in protest at her plans to keep close trade ties with the after Britain leaves the bloc.

The departure of two key eurosceptic ministers raised worries about a "hard Brexit".

On the other hand, spot gold may drop to $1,247 per ounce, as it has completed a bounce from the July 3 low of $1,237.32, said.

Meanwhile, hedge funds and money managers raised their net long position in COMEX gold by 105 contracts to 4,291 contracts in the week to July 3, (CFTC) data showed on Monday.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped 0.18 percent to 800.77 tonnes on Monday, its lowest since August 2017.

In other precious metals, silver was up 0.1 percent to $16.08 an ounce.

slipped 0.3 percent to $844.50 per ounce and palladium fell 0.9 percent to $951.95 an ounce.

(Reporting by in Bengaluru, Editing by and Subhranshu Sahu)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 10 2018. 13:32 IST