* Gold slips 1 pct ahead of U.S. $700 billion bailout vote
* Platinum down nearly 3 pct on demand worries
(Updates prices to afternoon)
By Lewa Pardomuan
SINGAPORE, Sept 29 (Reuters) - Gold slipped more than 1
percent on Monday as U.S. lawmakers closed in on creating a
$700 billion government fund to buy bad debt, with investors
also keen to book profits from last week's rally.
U.S. lawmakers readied for a vote on creating the fund to
alleviate the financial crisis while European authorities raced
to the rescue of three troubled banks. []
"I suspect it will weigh down on gold a little bit, but
there will be further selling as risk aversion eases," said
Darren Heathcote of Investec Australia in Sydney.
Spot gold <XAU=> traded at $875.75 an ounce, down $7.50 or
0.85 percent from New York's notional close on Friday, when it
jumped to its highest in nearly 7 weeks to $911.15, due to
uncertainties in the bailout plan.
It hit an intraday low of $868.85 on Monday -- down 1.6
percent from New York's close.
"I think we're rangebound between $860 and probably about
$920 at the moment. We're going to find some support by
physical buyers," said Heathcote, referring to levels last seen
in late July and late September.
Gold has bounced more than 18 percent since tumbling to
$736 on Sept. 11, its weakest in nearly a year. It also
benefited from a wave of risk aversion after U.S. investment
bank Lehman Brothers filed for bankruptcy.
"Investors are still looking around trying to decide which
market provides the best investment," said Koji Suzuki, senior
analyst at SBI Futures Co Ltd.
"The market is likely to stabilise as more detailed news of
the deal becomes available," he said.
The physical sector was mostly deserted, with many dealers
in Indonesia and Malaysia already away to celebrate the Eid
al-Fitr Muslim holiday this week. Gold bars were quoted at a
premium of $1 against spot London prices, unchanged from last
week. <GOLD/ASIA1>.
"I still receive some scraps but I guess people are
watching the financial situation in Europe and the U.S. bailout
plan, which is not actually confirmed," said a dealer in
Singapore.
Bullion holdings of SPDR Gold Trust <GLD.P>, the world's
largest gold-backed exchange-traded fund, remained near a
record at 724.63 tonnes. <XAUEXT-NYS-TT>.
The euro fell to $1.4497 <EUR=> on growing concerns about
the financial system. []
In industry news, the chief of metals consultants GFMS
said gold should surge above $1,000 an ounce as the financial
crisis fuels safe-haven fund buying, but may then come under
pressure as fickle investors slow purchases. []
Gold struck a record of $1,030.80 in March.
Platinum extended losses and fell as much as 2.8 percent
as poor car sales sparked demand worries. Spot platinum <XPT=>
traded at $1,098.50 an ounce, down $9.50 or 0.86 percent,
having hit a low of $1,076 an ounce.
Japan's Toyota Motor Corp <7203.T> has started to reduce
production at a plant in China, the world's second-largest auto
market, the Nikkei business daily said on Sunday. []
Gold futures for December delivery <GCZ8> on the COMEX
division of the New York Mercantile Exchange fell $6.7 an ounce
to $881.8 an ounce.
Precious metals prices at 0501 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 875.75 -7.50 -0.85 5.17
Spot Silver 13.18 -0.21 -1.57 -10.77
Spot Platinum 1098.50 -9.50 -0.86 -27.73
Spot Palladium 219.50 -1.50 -0.68 -40.35
TOCOM Gold 2996.00 33.00 +1.11 -2.09
18106
TOCOM Platinum 3759.00 -47.00 -1.23 -29.59
10383
TOCOM Silver 453.60 11.10 +2.51 -16.16
613
TOCOM Palladium 776.00 -37.00 -4.55 -42.56
446
Euro/Dollar 1.4498
Dollar/Yen 106.36
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Miho Yoshikawa and Sydney bureau)
(Editing by Ben Tan)
