PRECIOUS-Gold hits near 6-yr high on cenbank stimulus hints, Middle East worries

* Gold sees best week in more than 3 years
* Spot gold up nearly 4% so far this weak
* Silver on track for best week in 2019
* Dollar on course for a weekly loss

(Updates prices)
By Brijesh Patel
June 21 (Reuters) - Gold jumped to a near six-year high on
Friday, surpassing the key $1,400 level before shedding some
gains, but bullion was headed for its best week in more than
three years on dovish signals from major central banks and
rising tensions in the Middle East.
Weaker dollar, falling yields and tensions in the Middle
East have lifted the precious metal by nearly 4% so far this
week - its biggest since the week ended April 29, 2016, and also
set for a fifth consecutive weekly rise.
Spot gold XAU= was up 0.3% at $1,391.50 per ounce as of
0723 GMT, after earlier hitting its highest since Sept. 4, 2013
at $1,410.78.
U.S. gold futures GCv1 were steady at $1,396.30 an ounce.
"The dovishness of the Fed and ECB, geopolitical tensions in
the Middle East, and a technical breakout above $1,350 with
volumes gave strong support for the metal," said Jigar Trivedi,
a commodities analyst at Mumbai-based Anand Rathi Shares & Stock
Brokers.
"Momentum is positive for the next half of the year. The way
prices have risen, there could be a technical profit-booking,
but the undertone is positive," he said.
The Fed earlier this week said it was ready to battle
growing global and domestic economic risks, hinting at interest
rate cuts beginning as early as next month. With the Fed possibly easing its policy soon, and other
central banks such as the European Central Bank (ECB) and the
Bank of Japan likely to follow in their wake, government bonds
were on a bullish footing.
Since Wednesday, bullion has risen as much as $70 after
Fed's dovish comments and increased Middle East tensions.
"A global wave of monetary policy easing has the impact of
pushing global bond yields lower and is a key positive driver
for gold," said Heng Koon How, head of markets strategy at
Singapore's United Overseas Bank
The dollar was set for a weekly loss against major
currencies, and U.S. benchmark 10-year Treasury yields dropped
below 2% for the first time in more than 2-1/2 years.
USD/ US/
"We maintain our ... bullish call for gold and it looks like
our mid-2020 target of $1,450 may be reached much sooner," How
said.
Adding to the global anxiety were fresh worries about Middle
East tensions after Iran shot down a U.S. military drone,
raising fears of a military confrontation between Tehran and
Washington.
Among other precious metals, silver XAG= fell 0.8% to
$15.29 per ounce. However, the metal was on track for its
biggest weekly percentage gain this year.
Platinum XPT= was up 0.4% to $805.99 per ounce.
Palladium XPD= edged 0.1% higher to $1,479.36 an ounce and
was headed for a third consecutive weekly gain.

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Gold prices climb to multi-year highs after U.S. Fed hints at
rate cuts, Mideast tensions rise https://tmsnrt.rs/2RxK3BG
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