* Moody's puts Spain on review for possible downgrade
* Spot gold technically neutral []
* Coming up: U.S. consumer prices mm Nov; 1330 GMT
(Updates prices; recasts; adds comment)
By Rujun Shen
SINGAPORE, Dec 15 (Reuters) - Spot gold slipped nearly
half a percent on Wednesday, pressured by the dollar which
gained on upbeat U.S. retail sales data and a warning from
credit rating agency Moody's on a possible downgrade of
Spain's credit ratings.
However, the outlook for gold remains strong and it is
expected to enter another bullish year in 2011, with global
economic uncertainties and inflation anticipation luring
people to park their value in the metal, traders and analysts
said.
Spot gold shed 0.5 percent to $1,389.10 an ounce by
0657 GMT, after reaching a one-week high of $1,407.7. U.S.
Gold fell one percent to $1,389.7.
"The dollar strength could be exerting some downward
pressure on gold prices, due to the inverse relationship
between the two assets," said Ong Yi Ling, an analyst at
Philip Futures.
However, an acceleration in Europe's sovereign debt crisis
could prompt save-haven demand in gold, despite the tendency
in the dollar to strengthen under such circumstance, she said.
The euro extended the day's losses to around 0.5 percent
after Moody's decision. []
Spot gold is technically neutral as it trades
sideways between $1,394 to $1,408 per ounce, according to
Reuters market analyst Wang Tao. []
For a 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20101512085703.jpg
Trading interest was low as funds and traders wind down
their positions in the last few weeks of the year.
"Everybody is waiting for the holidays. They don't want to
buy," said a Hong Kong-based dealer. "Things will be quiet in
the market, and prices range between $1,380 to $1,410 until
the year end."
The U.S. Federal Reserve on Tuesday offered only a
cautious nod to the economy's improving prospects as it put a
spotlight on lofty unemployment and reaffirmed its commitment
to buy $600 billion in bonds.[]
Holdings in the SPDR Gold Trust , the world's largest
gold-backed exchange-traded fund, continued to slip, down
3.036 tonnes to 1,286.794 tonnes, its lowest level so far this
month.
In contrast, holdings in the iShares Silver Trust ,
the world's largest physically backed exchange-traded fund,
rose to an all-time high of 10,964.14 tonnes.
Spot silver reversed early gains to fall 0.9
percent to $29.14.
Precious metals prices at 0657 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1389.10 -6.51 -0.47 26.78
Spot Silver 29.14 -0.26 -0.88 73.14
Spot Platinum 1694.24 -10.00 -0.59 15.49
Spot Palladium 753.47 -4.50 -0.59 85.81
TOCOM Gold 3754.00 -22.00 -0.58 15.19 43076
TOCOM Platinum 4626.00 -6.00 -0.13 5.59 11048
TOCOM Silver 79.00 -1.60 -1.99 52.80 1693
TOCOM Palladium 2040.00 -9.00 -0.44 75.11 642
Euro/Dollar 1.3301
Dollar/Yen 83.83
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting By Rujun Shen; Editing by Himani Sarkar)
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