PRECIOUS-Gold drops on dollar, but political risk tempers losses – by Clara Denina (Reuters U.S. – November 25, 2015)

LONDON, Nov 25 The price of gold edged down on Wednesday on a rebounding dollar and expectations of a U.S. rate hike next month, but the downside was capped by retail demand emerging on tension between Turkey and Russia.

Turkey shot down the Russian jet near the Syrian border on Tuesday, saying the plane had violated its air space, in one of the most serious publicly acknowledged clashes between a NATO member country and Russia for half a century.

The tensions initially triggered a sell-off in equities and the dollar, while boosting safe-haven yen, gold and government debt.

Spot gold was down 0.1 percent at $1,074.76 an ounce by 1247 GMT. U.S. gold was unchanged on the day after a near 1 percent gain in the previous session.

“We have seen some profit taking on the highs and some modest buying on concerns of tension between Russia and Turkey,” bullion broker Sharps Pixley’s CEO Ross Norman said.

“A positive tone to the market can be expected with some caution, bearing in mind that we are expecting the rate rise from the Federal Reserve.”

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