* Hawkish comments from Fed officials dampen gold sentiment
* Gold could retrace to $1,414 - technicals []
* Coming up: U.S. pending home sales, Feb; 1400 GMT
(Adds comments, details; updates prices)
By Rujun Shen
SINGAPORE, March 28 (Reuters) - Gold prices held steady on
Monday, supported by turmoil in the Middle East and an unfolding
nuclear crisis in Japan, while hawkish comments from several
U.S. Federal Reserve officials weighed on sentiment.
The Fed is unlikely to extend its bond purchase program as
the economy is seen on firmer footing, several Fed officials
said. Some even called for trimming of the programme or raising
interest rates soon. []
[][]
The Fed's money-pumping into the economy has raised concerns
of inflation down the road, helping gold extend its
record-breaking rally. Some investors had expected the Fed to
extend its loose monetary policy, which could further increase
demand for gold as inflation hedge.
"The bar for future quantitative easing seems to have been
raised, and this is weighing on the sentiment of the gold
market," said Ong Yi Ling, an analyst at Phillip Futures.
Spot gold edged down 0.1 percent to $1,426.25 an
ounce by 0318 GMT, off the record high of $1,447.40 hit on March
24.
U.S. gold futures <GCv1> were nearly flat at $1,426.60.
A strong support was seen at the $1,420 level, Ong said.
"There is some light buying around $1,425 and $1,426 from
speculators, but we are not seeing much activity on the physical
market," said a Singapore-based dealer.
"People are holding back, hoping that prices might go lower
towards $1,420 before they buy again."
The fighting in Libya and spreading unrest in other nations
in the Middle East, in addition to the nervousness around
Japan's nuclear crisis, are supportive of gold prices, she
added.
Technical analysis showed that spot gold could extend
Friday's losses to $1,414, Reuters market analyst Wang Tao said.
[]
Investors will focus on the U.S. non-farm payroll data for
February, scheduled for release on April 1, to assess the status
of the economic recovery.
"Based on recent data, the number won't look too bad," said
Hou Xinqiang, an analyst at Jinrui Futures in China. "Gold is
likely to go through some correction, with the dollar bottoming
out."
The dollar index held steady, off a 15-month low hit
last week.
Spot silver lost 0.4 percent to $37.14 an ounce, off
its 31-year high at $38.13 reached on last Thursday.
Net long positions by speculators in gold and silver rose
last week as prices rose, the U.S. Commodity Futures Trading
Commission said. []
Precious metals prices 0318 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1426.25 -1.50 -0.11 0.48
Spot Silver 37.14 -0.15 -0.40 20.35
Spot Platinum 1738.50 -3.95 -0.23 -1.64
Spot Palladium 742.25 -2.70 -0.36 -7.16
TOCOM Gold 3755.00 10.00 +0.27 0.70 21751
TOCOM Platinum 4588.00 17.00 +0.37 -2.30 6198
TOCOM Silver 97.60 0.00 +0.00 20.49 967
TOCOM Palladium 1963.00 6.00 +0.31 -6.39 78
COMEX GOLD APR1 1426.60 0.40 +0.03 0.37 5846
COMEX SILVER MAY1 37.18 0.13 +0.35 20.17 3506
Euro/Dollar 1.4060
Dollar/Yen 81.66
TOCOM prices in yen per gram. Spot prices in $ per ounce.
COMEX gold and silver contracts show the most active months
(Editing by Clarence Fernandez)
Reuters
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