(Refiles to correct spelling of Monday in lead)
* Gold slips over 1 pct on stronger dollar, weak oil
* Nikkei bounces after falling sharply on recession fears
* Oil down below $56 a barrel
(Updates prices)
By Lewa Pardomuan
SINGAPORE, Nov 17 (Reuters) - Gold dropped more than 1
percent on Monday on a weaker euro after a meeting of the Group
of 20 major economies stopped short of announcing major
regulatory breakthroughs, sending oil prices down.
Investors also cashed in gold to cover losses in equities
as they braced for a third straight week of losses on Wall
Street, while a fall in oil prices reduced bullion's safe haven
appeal. Speculators cut positions in New York gold futures.
Gold <XAU=> was trading at $740.35 an ounce, down $1 from
New York's notional close on Friday, when it gained 1.6 percent
on technical buying ahead of the G20 summit.
Gold is struggling to sustain an uptrend since hitting a
two-month high of $931 in early October. It was well below a
lifetime high of $1,030.80 struck in March.
"At the moment, maybe investors are bit more cautious
about gold as a safe haven asset given that basically the
price, obviously, compared with a couple of months ago has
fallen," said David Moore, commodities analyst at Commonwealth
Bank of Australia in Sydney. "
The gold price has also been very volatile at times as
well," he added. "I think there's a preferance for cash at the
moment."
The dollar rose against the euro after the G20 meeting
produced no concrete plan to avert a looming global recession,
which threatened to cut demand for commodities and prompted
investors to dump risky assets, including gold. []
Governments from Washington to Beijing agreed on Saturday
to a raft of fiscal and monetary steps to rescue the global
economy but it was left to individual governments to tailor
their responses to their particular circumstances and troubled
industries. []
Weaker oil and volatile equity markets equties also put
pressure on gold. Japan's Nikkei share average rose more than 1
percent, having fallen sharply in early trade after data showed
the world's second-biggest economy was in recession. []
Oil <CLc1> slipped more than $1 to below $56 a barrel,
falling to near its weakest in almost two years, on recession
fears. []
"There's very light physical buying at lower levels but I
guess the market is still trading at a range of $700 to $760.
It simply follows movements in the stock markets," said a
dealer in Hong Kong.
New York gold futures <GCZ8> fell $2.3 an ounce to $740.2
after settling up $37.50, or 5.3 percent, to $742.50 an ounce
on the COMEX division of the New York Mercantile Exchange on
Friday.
Noncommercial investors, or speculators, were net long on
63,959 contracts on gold futures traded on COMEX in the week
ended Nov. 11 compared to a net long of 68,195 contracts in the
week to Nov. 4.
Platinum <XPT=> was trading at $852.50 ounce, up $27 from
New York's notional close.
Precious metals prices at 0229 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 740.35 -1.00 -0.13 -11.09
Spot Silver 9.61 0.14 +1.48 -34.94
Spot Platinum 852.50 27.00 +3.27 -43.91
Spot Palladium 217.50 5.50 +2.59 -40.90
TOCOM Gold 2309.00 43.00 +1.90 -24.54
19664
TOCOM Platinum 2718.00 90.00 +3.42 -49.09
8635
TOCOM Silver 299.90 13.70 +4.79 -44.57
459
TOCOM Palladium 699.00 10.00 +1.45 -48.26
106
Euro/Dollar 1.2571
Dollar/Yen 96.98
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 James Regan in Sydney; Editing by
Michael Urquhart)
(lewa.pardomuan@thomsonreuters.com; +65 6870 3834; Reuters
Messaging:lewa.pardomuan.reuters.com@reuters.net))
