* Yuan eyed after talk of floating exchange-rate system
* Silver ETF records outflow; holdings down 3.4 pct in April
* Strong technical support seen for gold at $1,144/oz
(Updates prices; adds detail, analyst's comment)
By Jan Harvey and Rebekah Curtis
LONDON, April 16 (Reuters) - Gold fell 2 percent on Friday
to $1,133.65 an ounce, with sentiment hit by dollar strength and
news the U.S. Securities and Exchange Commission charged Goldman
Sachs Group Inc <GS.N> with fraud on subprime mortgages.
Spot gold <XAU=> was bid at $1,136.25 an ounce at 1548 GMT,
against $1,157.95 late in New York on Thursday. The metal
earlier hit its lowest since April 7.
U.S. gold futures for June delivery <GCM0> on the COMEX
division of the New York Mercantile Exchange fell $23 to
$1,137.3 an ounce.
The news of Goldman Sachs being charged with fraud knocked
equities and commodities markets sentiment, analysts said.
[] [] []
"The sell-off in stocks has rattled commodities, due to
Goldman Sachs being charged for fraud," said Robin Bhar, an
analyst at Credit Agricole.
"The commodity markets have been closely correlated to
rising stock markets, so any derailment of that trend was going
to be slightly negative for commodities."
Analysts said investors were also unnerved by a report that
China planned to gradually adopt a floating exchange-rate system
for its yuan currency, though analysts said Goldman was the key
cause for weakening sentiment. []
Also knocking gold, the euro slid to a one-week low below
the key $1.35 level on Friday, driven by concerns about
debt-laden Greece and technical momentum after stronger than
expected U.S. housing starts data. [] []
"At this point, gold is back trading as usual against the
dollar," said Andrey Kryuchenkov, an analyst at VTB Capital. "It
looks overbought, and physical buyers are not going to come back
in at these levels."
"There is very good support at $1,144, but I expect it to
come off to the mid-$1,130s. We need a bit of a correction."
Strength in the dollar curbs gold's appeal as an alternative
asset and makes dollar-priced commodities more expensive for
other currency holders.
OIL RETREATS
Oil prices, often another key driver of the gold market,
fell about 3 percent a barrel to below $83, pressured by dollar
strength and concerns over U.S. demand. []
U.S. investment demand for gold has been firm in recent
weeks, with holdings of the world's largest gold-backed
exchange-traded fund, New York's SPDR Gold Trust <GLD>, steady
at record levels on Thursday. []
From a chart perspective, gold prices are looking relatively
firm, though a further pullback is on the cards after the metal
hit four-month highs earlier this month, analysts said.
"While unwinding its recent overbought momentum readings on
daily charts, bullish sentiment for gold is increasing," said
Barclays Capital in a note.
"However, (it) has yet to close above its January
peak/resistance at $1,162/66, and such a close would confirm a
resumption of the uptrend to $1,187. In the near term, we are
neutral within the $1,143-1,162 range and expect further gains
to $1,188 later this month."
For Reuters' technical analysis, click on []
Among other precious metals, silver <XAG=> was at $17.89 an
ounce against $18.37.
The world's largest silver ETF, the iShares Silver Trust
<SLV>, said its holdings fell 67.1 tonnes from the day before to
8,958.68 tonnes on Apr. 15. Its holdings have fallen 319.5
tonnes or 3.4 percent so far this month. []
Platinum <XPT=> was at $1,696.50 an ounce against $1,717.50,
while palladium <XPD=> was at $535 against $542.
(Editing by Sue Thomas)
