Gold is modestly lower in Asia-Pac trade on....>

GOLD: Gold is modestly lower in Asia-Pac trade on Tuesday, the yellow metal last

down $0.87 at $1,293.65. The slight drop still keeps gold near highs hit

yesterday after reports that North Korea could be preparing for another missile

launch test.

- US politics are still in focus, with gold sensitive to incremental comments on

the Senate tax vote expected later this week.

- The latest CFTC COT data, delayed until Monday due to early closures on

Friday, showed that net longs in gold were cut in the latest week. Longs were

reduced by 4k contracts to 177k.

- There is a busy docket of Fed speakers on Tuesday; Dudley, Harker and Powell

will speak, while markets will also hear from US Tsy Sec Mnuchin.

- MNI technical analysis sees support at $1285.8 - Low Nov 24, resistance is

seen at $1299.1 - High Nov 27. The break of $1297.0 lacked follow through but

with the 55-DMA ($1286.3) now supporting bullish focus shifts to $1306.0-1320.0.

The Bollinger top ($1296.8) is the key concern for bulls with potential to limit

follow through.