PRECIOUS-Gold above $1,050, weaker dollar supports

                                
 * Further dollar weakness seen supporting bullion
                                
 * AngloGold Ashanti lowers annual production target
                                
 * SPDR Gold holdings fall 4.575 tonnes last week [GOL/SPDR]

                                
 (Recasts, previous TOKYO)
                                
 By Rebekah Curtis
                                
 LONDON, Nov 2 (Reuters) - Gold rose above $1,050 an ounce on
Monday, wiping out most of the previous week's losses, as dollar
weakness made bullion cheaper for holders of other currencies.
                                
 Spot gold <XAU=> rose to $1,052 an ounce at 1102 GMT,
compared with New York's notional close of $1,044.40, erasing
its 1-percent loss from the week before.
                                
 Last week gold registered its first weekly loss since the
week of Sept. 25, after dollar weakness had helped spur four
consecutive weeks of gains.
                                
 The dollar drifted lower against a basket of major
currencies. [DLR/] The euro bid at $1.4765. <EUR=>
                                
 "For the next 6 months were going to see quite a bit more
dollar weakness," Standard Bank analyst Walter De Wet said.
                                
 "On a relative basis the U.S. interest rates remain very
low. Also, the Fed has been a lot more aggressive on
quantitative easing than any other central bank, which is not
good for dollar strength."
                                
 U.S. gold futures for December delivery <GCZ9> stood at
$1,052.5 an ounce, up about 1 percent from Friday when the
contract fell $6.70 to $1,040.40 on the COMEX division of the
New York Mercantile Exchange.
                                
 Among data due on Monday, investors will eye U.S. ISM and
pending homes sales data, both due at 1500 GMT. [MI/DIARY]
                                
 "We need...a weaker dollar then gold can rebound to $1,050
during course of week," said Tobias Merath, an analyst at Credit
Suisse.
                                
 "Over the last weeks we've seen a bit of a correction in
gold - driven by dollar strength."
                                
 
                                
 
                                
 ANGLOGOLD ASHANTI
                                
 AngloGold Ashanti <ANGJ.J>, the world's No.3 gold producer,
lowered its annual production target for the second straight
quarter after suspending output at a South African mine for
safety checks. [ID:66048]
                                
 AngloGold and Ranggold said on Saturday they had entered
into an agreement with Congo's state owned OKIMO to buy a stake
in Moto Goldmines for $113.6 million. [ID:nLV103241]
                                
 The world' largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings fell 0.915 tonnes on Friday,
making the total weekly decline to 4.575 tonnes. [GOL/SPDR]
                                
 But Standard Bank's Walter de Wet said that physical buying
was supporting prices.
                                
 "On the downside it seems well-protected," he said.
                                
 "We're seeing good physical buying. When gold goes below
$1,040 there's some good interest which is supporting the gold
price."
                                
 Silver <XAG=> traded at $16.50 from $16.27. Platinum was at
$1,329 from $1,322.5 and palladium was at $322.50 from $318.5.