Gold lower, but retains shine

GOLD edged lower yesterday as the dollar gained, but tensions over North Korea and the upcoming French and UK elections underpinned investor demand in the safe-haven asset. Spot gold slipped 0.57 percent at $1 281.91 (R17 071) per ounce as of 11.29am, but was still near its highest level since November touched on Monday of $1 295.42. US gold futures were 0.8 percent lower at $1 283.90. US Vice-President Mike Pence said Washington would work with its allies and China to put economic and diplomatic pressure on North Korea, but added the US would defeat any attack with an “overwhelming response”. “Today’s move is just a bit of a pause, because we are still seeing pretty decent investor interest in gold,” said ETF Securities analyst Martin Arnold. “Investors are still using gold for insurance and defensive positioning because there are concerns over equity valuations and politics.” In France, investors remained nervous ahead of the first round of the presidential election on Sunday. A closely-watched poll showed the first round of voting was too close to call, although centrist Emmanuel Macron remained favourite to win overall. – Reuters EGYPT