* Dollar gains against a basket of currencies []
* Spot gold to rise to $1,386.75/oz -technicals []
* Coming up: Federal Reserve Chairman speaks; 2000 GMT
(Updates prices)
By Rujun Shen
SINGAPORE, Oct 19 (Reuters) - Gold edged lower on Tuesday,
pressured by a stronger dollar, but anticipation of further
monetary easing by the U.S. central bank is likely to keep
sentiment bubbling.
The dollar rose more than half a percent against a basket
of currencies, extending gains made in the previous session
after U.S. Treasury Secretary Tim Geithner said his country
would not engage in dollar devaluation.[] []
"Gold is likely to continue the rally before the Federal
Reserve meeting in early November. Unless the Fed announces
quantitative easing to a huge extent, gold will retrace," said
Zhu Yilin, general manager of the research and development
department of Jingyi Futures in Shanghai.
"It's all about buying the anticipation. Once the result is
out, it's time to close positions."
U.S. industrial output shrank last month for the first time
in more than a year, a sign the economy was in a slow-growth
rut that appears certain to lead to more stimulus from the
central bank. []
Spot gold <XAU=> fell $2.6 to $1,365.85 an ounce by 0606
GMT, after moving in a tight range of less than $2 in the
previous session.
U.S. gold futures for December delivery <GCZ0> fell 0.4
percent to $1,366.4.
Technical analysis showed that gold could rise to
$1,386.75, as the retracement is seen to have ended at
$1,352.55, a low touched on Monday, according to Reuters market
analyst Wang Tao. []
For a graphic showing the 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20101910085811.jpg
"The support level is at $1,350. Gold is likely to trade
around the current level, until we know how much the stimulus
is going to be," said a Hong Kong-based dealer.
He added that premiums were little changed from last week,
at about 70 cents above London prices.
"Demand from China is steady, as people still like to buy
gold, betting on prices to rise to $1,400, $1,500 and even
$1,600. The yuan appreciation also helps buying from China."
China has let its currency rise more swiftly in recent
weeks after depegging it from the dollar in June, but a central
bank spokesman said the country must ensure the yuan moves in a
controllable way and not become over-adjusted in response to
market forces. []
Spot silver <XAG=> was down 0.4 percent at $24.26 an ounce,
gaining 44 percent so far this year, leading gains in the
precious metals complex.
Holdings in the iShares Silver Trust <SLV>, the world's
largest silver-backed exchange-traded fund, remained at a peak
of 10,224.05 tonnes by Oct 18.
Precious metals prices at 0606 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1365.85 -2.60 -0.19 24.66
Spot Silver 24.26 -0.09 -0.37 44.15
Spot Platinum 1692.00 2.00 +0.12 15.34
Spot Palladium 583.00 -0.58 -0.10 43.77
TOCOM Gold 3588.00 31.00 +0.87 10.10
32322
TOCOM Platinum 4466.00 56.00 +1.27 1.94
11702
TOCOM Silver 63.90 1.20 +1.91 23.60
1184
TOCOM Palladium 1533.00 31.00 +2.06 31.59
546
Euro/Dollar 1.3906
Dollar/Yen 81.52
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
