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

                                
 * Further dollar weakness seen supporting bullion
                                
 * AngloGold Ashanti lowers annual production target
                                
 * SPDR Gold Trust <GLD> holdings dip

                                
 (Updates prices, adds analyst comment)
                                
 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 $1,052.55 an ounce at 1250 GMT,
compared with New York's notional close of $1,044.40, nearly
erasing its 1-percent loss from the week before.
                                
 "It's always a dollar story," Afshin Nabavi, head of trading
at MKS Finance in Geneva, said of the gold price's recent
correlation with the U.S. currency.
                                
 He added that bullion was currently meeting resistance at
$1,060, and "if the dollar continues to come under pressure then
we will see that (resistance) taken away".
                                
 The dollar drifted lower against a basket of major
currencies and the euro bid at $1.4769. <EUR=> [DLR/]
                                
 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.
                                
 "For the next six months we're 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
$1,053.2 an ounce, up $12.8 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]
                                
 
                                
 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:nL2266048]
                                
 Other African miner Randgold Resources <RRS.L> and AngloGold
Ashanti said they agreed to buy an additional 20 percent in the
Moto gold project in the mineral-rich Democratic Republic of
Congo for about $113.6 million. [ID:nL2334531]
                                
 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]
                                
 Analysts said physical buying of gold was holding up,
supporting bullion prices.
                                
 "On the downside it seems well protected," Standard Bank's
Walter de Wet said. "We're seeing good physical buying. When
gold goes below $1,040 there's some good interest which is
supporting the price."
                                
 Silver <XAG=> traded at $16.54 from $16.27. Platinum was at
$1,332 from $1,322.5 and palladium was at $322.50 from $318.5.
 (Editing by Sue Thomas)