(Updates prices, analyst comments)
* Palladium hits all-time peak of $2,106/oz
* Silver eases from four-month high
By Karthika Suresh Namboothiri
Jan 8 (Reuters) - Gold retreated after vaulting above the
$1,600 level for the first time in nearly seven years on
Wednesday as fears of a larger conflict in the Middle East
abated on milder rhetoric between Iran and the United States.
Spot gold XAU= was slightly subdued at $1,573.50 per ounce
as of 10:55 a.m. EST (1555 GMT), having soared to $1,610.90
earlier in the session, its highest level since March 2013.
Meanwhile, U.S. gold futures GCcv1 inched 0.1% higher to
$1,575.
"Expectations are that we're not going to see a war, so you
might see some softness. The rest of the catalysts remain in
place for gold," said Edward Moya, a senior market analyst at
OANDA
Gold jumped as much as 2.4% in the session after Iran
attacked U.S.-led forces in Iraq in retaliation for a U.S. drone
strike that killed an Iranian military commander last week. The
U.S. attack led to fears of a new war in the Middle East.
However, the United States said it is not aware of any
casualties resulting from Iran's attack.
Tweets from Iranian officials stating that Tehran did not
want a war and that its strikes "concluded" its response to
Friday's killing, and U.S. President Donald Trump's comment that
"all is well," helped ebb concerns of conflict in the region.
"Gold is seeing minor profit-taking after tumultuous moves
supported by stocks see-saw due to geopolitical events in Middle
East," George Gero, managing director at RBC Wealth Management,
said in a research note, adding that a trading range of
$1,550-$1,600 will likely hold for now.
Gold is a preferred asset during times of political and
economic uncertainty.
The geopolitical and economic drivers which impacted gold
prices in 2019 - including U.S.-China trade tensions, Brexit and
the U.S. Federal Reserve's monetary policy - would continue into
2020, the World Gold Council said in a note.
Investors also kept a close eye on economic data from the
United States for clues to the health of the world's largest
economy. Data showed U.S. private payrolls surged in December,
weighing on the metal. Meanwhile, palladium XPD= extended its rally, undaunted by
most market events driving other precious metals. Prices were up
2.4% at $2,100, close to the all-time high of $2,106 notched
earlier in the session.
Platinum XPT= eased 1.1% to $960.66 an ounce, while silver
XAG= shed 0.3% to $18.33. Silver prices had earlier notched a
four-month high of $18.85.
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Gold eases off $1,600/oz peak https://tmsnrt.rs/39P4SBd
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