* Gold ends three-session winning streak; dollar rises
* Technical charts suggest rangebound trade near term
* Rising real interest rates seen capping
* Coming up: U.S. March non-farm payrolls on Friday
(Updates prices, adds reaction to U.S. data)
By Frank Tang
NEW YORK, March 30 (Reuters) - Gold fell toward $1,100 an
ounce Tuesday, snapping a three-session winning streak, as a
dollar bounce against the euro and month-end squaring prompted
traders to lessen positions.
Bullion has been in a $60 trading range in the past six
weeks, indicating indecision among bullion investors because of
a lack of traditional price drivers such as currency weakness
or inflation.
"There is no big defining element in the market right now,
as there is sufficient sovereign risk worries to keep the
market depressed through a strong dollar," said James Steel,
chief commodities analyst at HSBC.
Gold is also on track to end the first quarter up less than
1 percent, the smallest quarterly gain since the end of 2008.
Spot gold <XAU=> was at $1,104 an ounce 2:43 p.m. EDT (1843
GMT), compared with $1,108.20 quoted late in New York on
Monday.
U.S. June gold futures <GCM0> settled down $5.80 at
$1,105.70 an ounce.
A higher dollar due to positive U.S. consumer confidence
data prompted profit-taking in gold. The inverse relationship
between gold and the dollar appeared to reassert itself of
late, following an apparent breakdown earlier in March.
Analysts, however, said chart patterns suggest the
rangebound pattern will persist.
Adam Hewison, president of MarketClub.com, said that
technical chart cycles indicate gold prices will be trapped in
a broad range from $1,050 to $1,200 for the rest of the year.
"It's just frustrating and not a very friendly market for
trading. There is no reason in my mind to get excited about
gold on the long side at this particular moment."
Analysts watching TIPS or Treasury Inflation-Protected
Securities said rising real interest rates were weighing on
gold market sentiment. []
Any rise in U.S. interest rates could dull the attraction
of holding a non-interest rate bearing asset priced in dollars,
such as gold.
"Real yields from TIPS have been increasing lately. Rising
real yields increase the opportunity cost of holding gold, so
this could exert downward pressure on the gold price," said
Eliane Tanner, commodities analyst at Credit Suisse.
WEAK PHYSICAL DEMAND
Asia-based traders said activity in the physical market was
thin, but main consumer India was expected to resume purchases
ahead of the wedding season in April.
Gold jewelry is the most common gift during religious
events in India and local jewelers normally stock up weeks
before key celebrations.
On the investment front, the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust <GLD>, said its holdings
stood at 1,129.823 tonnes as of March 29, up 5.176 tonnes from
the previous business day. []
"Clearly, a pullback in prices tempted some retail
investors to return to the market, which was also reflected in
improved sales of gold coins," VTB Capital said.
Silver and the platinum group metals retreated on Tuesday,
after Monday's sharp rally as signs of economic strength
boosted metals with industrial properties.
Spot silver <XAG=> was at $17.31 per ounce from 17.32 late
in New York on Monday, palladium <XPD=> was at $468, down from
$471 an ounce and platinum <XPT=> at $1,619 from $1,620.50 late
on Monday.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCM0> 1105.70 -5.8 -0.5 1096.20 0.9
US silver <SIK0> 17.330 -0.057 -0.3 16.845 2.9
US platinum <PLN0> 1626.10 -5.40 -0.3 1471.00 10.5
US palladium <PAM0> 470.35 -4.65 -1.0 408.85 15.0
Prices at 3:46 p.m. EDT (1946 GMT)
Gold <XAU=> 1104.15 -4.05 -0.4 1096.35 0.7
Silver <XAG=> 17.31 -0.01 -0.1 16.84 2.8
Platinum <XPT=> 1619.00 -1.50 -0.1 1465.50 10.5
Palladium <XPD=> 468.50 -2.500 -0.5 405.50 15.5
Gold Fix <XAUFIX=> 1107.00 -2.75 -0.2 1104 0.3
Silver Fix <XAGFIX=> 17.41 26.00 1.5 16.99 2.5
Platinum Fix <XPTFIX=> 1622.00 5.00 0.3 1466 10.6
Palladium Fix<XPDFIX=> 472.00 1.00 0.2 402 17.4
(Additional reporting by Veronica Brown and Pratima Desai in
London, Lewa Pardomuan in Singapore)
(Reporting by Frank Tang)
