Gold slips as dollar and shares rise

Gold hits five-month high after Trump's dollar comments

"Firstly, rising US-North Korea tensions, associated with the country's nuclear ambitions, culminated over the weekend with a (failed) missile test, and increasingly firm messaging from the US, with senior officials remarking that the US" "policy of strategic patience has ended' with North Korea", BMO said in a note.

The dollar index, which tracks the greenback against a basket of six rival currencies, edged up 0.2% to 99.62, pulling away from Tuesday's low of 99.36, its deepest trough since March 28.

"Indeed, despite the recent upswing in metal prices, we have seen a relatively muted response from the equities, with sector average multiples remaining largely flat, suggesting that investors are expecting some metal price weakness heading into Fed meetings in May and June".

US homebuilding fell in March after unseasonably mild weather buoyed activity in February and manufacturing output dropped for the first time in seven months, further indications that economic growth braked sharply in the first quarter.

Spot silver turned down 0.4 per cent to $US18.445 an ounce after touching a five-month high of $US18.649. The last bull market ran from 2001 to 2011 a saw the dollar price of gold move from $300 to $1,900.

The dollar slipped to 108.35 yen, hitting a five-month low.

That helped to drive down the 10-year U.S. Treasuries yield to 2.200 percent, its lowest level since mid-November from around 2.228 percent on Thursday before a market holiday on Friday. Regional tensions have risen over the past weeks as U.S. President Donald Trump has taken a tough rhetorical line with Pyongyang.

Gold slipped on Wednesday as the U.S. dollar recovered a bit from a three-week low hit in the previous session, but geopolitical concerns about North Korea and nervousness ahead of the French presidential election lent support to the safe-haven asset.

A run of disappointing United States economic data and doubts the Trump administration will progress with tax cuts have quelled expectations of faster inflation. Two polls put any of the four frontrunners, including far-right candidate Marine Le Pen and hard-left challenger Jean-Luc Melenchon, within reach of a two-person run-off vote.

President Tayyip Erdogan declared victory in a referendum on Sunday to grant him sweeping powers in the biggest overhaul of modern Turkish politics, but opponents said the vote was marred by irregularities and they would challenge its result.

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