* Dollar-gold inverse correlation strongest since Jan
* Gold to retrace to $1,328 - technicals []
* Coming up: U.S. consumer confidence, Oct; 1400 GMT
(Updates prices; adds dollar-gold correlation chart)
By Rujun Shen
SINGAPORE, Oct 26 (Reuters) - Gold was steady on Tuesday as
investors turned focus on expectations of more monetary easing
by the Federal Reserve, and physical buyers were on the
sidelines awaiting a clear direction on prices.
After the Group of 20 meeting produced little firm policy
initiatives, investors resumed selling off the dollar, which
resulted in the greenback sinking to a 15-year low against the
yen on Monday. The dollar was steady on Tuesday. []
Spot gold <XAU=> was up $1.55 at $1,339.55 an ounce by 0638
GMT, moving in a narrow range between $1,338 and $1,343.
U.S. gold futures <GCZ0> remained almost unchanged at
$1,340.
"People are waiting for next week's Fed meeting to see how
much money they are going to pump into the market," said Ronald
Leung, a physical dealer at Lee Cheong Gold Dealers.
"There is buying interest at the lower end, below $1,325.
At the current price level, there is not much physical buying.
Why would they buy now? They've seen lower levels."
The weakness in the dollar has been the main factor pushing
gold prices to continuous record highs in past two months. The
dollar-gold inverse correlation reached -0.775, its strongest
since early January.
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For stories on the anticipated easing move from the
central bank, see []
For a graphic on the gold-dollar correlation, click:
http://graphics.thomsonreuters.com/AS/0810/RS_20102610143705.jp
g For a 24-hour gold technical outlook, click:
http://graphics.thomsonreuters.com/AS/0810/RS_20102610143705.jp
g For gold prices in dollars and rupees, see:
http://graphics.thomsonreuters.com/AS/0810/RS_20102610121156.jp
g
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> Technical analysis showed that spot gold may have
completed its first leg of rebound at $1,349.20 an ounce and
would retrace to $1,328 to develop a wave "b", followed by a
second leg of a wave "c" rebound, according to Wang Tao, a
Reuters market analyst. []
"The market is trapped between $1,315 and $1,350," said a
Singapore-based dealer. "It's neither here nor there, and
people are not sure whether they should short gold or buy."
Buying interest in the physical market was thin, but
Indians have been buying thanks to a strong rupee, the dealer
said.
"As long as the rupee doesn't go beyond 45 (for a dollar),
Indians will still have the buying power."
Spot silver <XAG=> edged up 0.3 percent to $23.57 an ounce.
China remained a net importer of silver in September, with
imports in the first nine months of the year up 24.7 percent on
the year and exports in the period down 60.2 percent, official
trade data showed. []
Spot palladium <XPD=> gained 0.7 percent to $610.35 an
ounce, after hitting a nine-year high of $617.50 on Monday.
Precious metals prices at 0638 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1339.55 1.55 +0.12 22.26
Spot Silver 23.57 0.07 +0.30 40.05
Spot Platinum 1700.67 8.62 +0.51 15.93
Spot Palladium 610.35 4.15 +0.68 50.52
TOCOM Gold 3485.00 -12.00 -0.34 6.93
34306
TOCOM Platinum 4450.00 38.00 +0.86 1.57
11556
TOCOM Silver 61.30 -0.40 -0.65 18.57
718
TOCOM Palladium 1598.00 32.00 +2.04 37.17
707
Euro/Dollar 1.3976
Dollar/Yen 80.70
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Manash Goswami)
