PRECIOUS-Gold falls nearly 1 pct on oil, silver off 31-year peak

                                
 * Gold to end retracement around $1,444-technicals
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 * Coming Up: U.S. ICSC chain stores yy Weekly; 1145 GMT

 (Updates prices, adds quotes)	
                                
 SINGAPORE, April 12 (Reuters) - Gold slipped nearly 1
percent on Tuesday, hovering below a record high and silver was
off a 31-year peak hit in the previous session after long-term
commodity bull Goldman Sachs advised investors to lock-in
trading profits before oil and other markets reverse.	
                                
 But a weaker dollar could cushion the fall as two top U.S.
Federal Reserve officials, Janet Yellen and William Dudley, said
the central bank should stick to its super-easy monetary policy,
with inflation not a threat and unemployment too high.
[ID:nN11296347]  	
                                
  Spot gold fell $12.05 an ounce to $1,454.70 an ounce
by 0317 GMT. Bullion struck a lifetime high above $1,476 an
ounce on Monday on the prospect of a weaker dollar.	
                                
 "Some people may take profits and reduce positions.
Everybody knows that Goldman Sachs recommends to reduce
positions. That's why the market is a bit scared," said Dick
Poon, manager of precious metals at Heraeus in Hong Kong.	
                                
 "I think sentiment is still bullish. It's still
consolidating right now." 	
                                
 Physical dealers in Hong Kong and Singapore said sales of
scrap were limited despite gold's recent rise to a record high,
suggesting that holders were still waiting for more gains before
cashing in.	
                                
 Spot gold may end the current retracement around
$1,444 per ounce and resume its uptrend thereafter, according to
Wang Tao, who is a Reuters market analyst for commodities and
energy technicals.	
                                
 For a 24-hour gold technical outlook: 	
                                
 http://graphics.thomsonreuters.com/WT1/20111204090716.jpg 	
                                
 Spot silver slipped 29 cents to $39.88 an ounce,
below a 31-year high at $41.93 struck on Monday. 	
                                
  Goldman Sachs told its clients there is a strong
chance of key commodity prices reversing and recommended they
take profits, triggering declines in oil prices as worries about
falling demand escalated.    	
                                
 Goldman noted "nascent signs of oil demand destruction in
the United States" that could drag prices down, as well as the
possibility of a Libya ceasefire. Nigeria's elections, which had
added further risk to oil markets, had thus far not caused
supply disruptions, it added. [ID:nN11303064] 	
                                
 "Some investors are using the Goldman Sachs recommendation
as a reason to take profits. I would put the support level at
around $1,450 level and of course, it is breached, we could see
a much sharper retracement all the way to about $1,430 or even
less than that," said a dealer in Singapore.	
                                
 "I think the fundamentals for gold remain strong. This is
just profit taking after a huge run-up. The outlook for the
dollar is also still shaky."	
                                
 Concerns about inflation remain, traders said.	
                                
 The International Monetary Fund on Monday said soaring oil
prices and inflation in emerging economies pose new risks to
global recovery but are not yet strong enough to derail it.
[ID:nN08193089]	
                                
 U.S. gold futures for June dropped $12 an ounce
$1,456.1 an ounce. 	
                                
 In other markets, the euro retreated from Friday's
15-month high around $1.4485 to $1.4435, but traders say the
January high of $1.4582 remains in play. Tokyo stocks fell 1.6
percent on growing worries the impact of the March 11 earthquake
and tsunami may be more severe that originally expected. 
 	
                                
    	
 Precious metals prices 0317 GMT
 Metal             Last    Change   Pct chg  YTD pct chg Turnover
 Spot Gold        1454.70  -12.05    -0.82      2.48
 Spot Silver        39.88  -0.29     -0.72     29.23
 Spot Platinum    1774.00  -6.30     -0.35      0.37
 Spot Palladium    772.47  -8.88     -1.14     -3.38
 TOCOM Gold       3923.00  -100.00   -2.49      5.20       68300
 TOCOM Platinum   4779.00  -170.00   -3.44      1.77       14669
 TOCOM Silver      106.60  -6.80      -6.00    31.60        2975
 TOCOM Palladium  2077.00  -116.00   -5.29     -0.95         261
 Euro/Dollar       1.4390
 Dollar/Yen         83.53
 TOCOM prices in yen per gram. Spot prices in  $ per ounce.
                                
  	
 (Reporting by Lewa Pardomuan; Editing by Ed Lane)	
 	
 	
 	
                                
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