* Gold trims early gains on euro but sentiment positive
* Oil extends gains, Nikkei up on U.S. stimulus plans
* Investors await FOMC meeting on interest rates next week
(Updates prices)
SINGAPORE, Dec 9 (Reuters) - Gold trimmed early gains on
Tuesday as speculators booked profits after bullion posted its
biggest daily gain in two weeks the previous day, but firm oil
and optimism about U.S. economic plans underpinned sentiment.
U.S. President-elect Barack Obama pledged to create more
than 2.5 million new jobs by 2011, while Chinese and European
leaders plotted their next steps as investors looked to
governments to lead major economies out of recession.
[]
Gold <XAU=> hit an intraday high of $776.45 an ounce before
slipping to $771.40, barely changed from New York's notional
close of $771.30 as the euro turned lower against the U.S.
dollar.
Gold has bounced more than 10 percent since tumbling to a
13-month low of $680.80 in late October, when a sell-off in
equities forced investors to dump bullion to cover margin
calls. Bullion was still 25 percent below March's record of
$1,030.80.
"We are still in a relatively wide range because we are
stil faced with a great deal of uncertainty in the present
moment," said Darren Heathcote of Investec Australia in Sydney.
"But gold will benefit from a weaker dollar, from a strong
oil or it will benefit from a stronger stock market as it's
probably less need for margin calls."
Oil <CLc1> extended gains, moving away from four-year low
hit last week, due to gains in share markets, deepening cuts by
Saudi Arabia and expectations of a new OPEC deal next week.
[] Dealers also awaited the outcome of the U.S. Federal
Reserve's Federal Open Market Committee meeting on interest
rates on Dec. 15, which could determine the direction of the
dollar and precious metals.
"The expectation is the dollar will soften after the rate
cut and that will be supportive for gold. But I think gold will
trade in a range for the time being," said a dealer in Hong
Kong.
"Physical buying is limited at the moment after prices went
up to as high as $780 this week. I think jewellers have already
bought enough stocks for the Christmas period," he said.
Premiums for gold bars were unchanged in Hong Kong at $1.50
to $2.00 to the spot London prices. <GOLD/ASIA1>
The FOMC has already slashed its benchmark lending rate to
1 percent from 5.25 percent since September 2007 in an attempt
to stabilise financial markets and stem economic weakness.
Dealers expect at least a half percentage point cut in the
Fed's benchmark lending rate at next week's policy meeting, to
0.5 percent.
The Nikkei <> rose 0.5 percent on Tuesday on optimism
for U.S. economic plans and a government bailout of the "Big
Three" automakers. []. The euro slipped to $1.2912 <EUR=>.
Platinum <XPT=> was trading at $803.50 an ounce, down
$17.50 from New York notional close on Monday, when it gained
more than 5 percent on growing optimism about the auto industry
rescue plan.
The White House reviewed a Democratic plan on Monday to
bail out stricken automakers with up to $15 billion in loans, a
bid that would also clear the way for longer-term help if
industry meets certain conditions. []
New York gold futures <GCZ9> added $3.1 an ounce to $772.4
in electronic trade.
Precious metals prices at 0249 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 771.40 0.10 +0.01 -7.36
Spot Silver 9.98 0.03 +0.30 -32.43
Spot Platinum 803.50 -17.50 -2.13 -47.14
Spot Palladium 173.00 0.00 +0.00 -52.99
TOCOM Gold 2293.00 -44.00 -1.88 -25.07
20787
TOCOM Platinum 2398.00 -128.00 -5.07 -55.09
9905
TOCOM Silver 294.20 1.20 +0.41 -45.62
225
TOCOM Palladium 530.00 2.00 +0.38 -60.77
170
Euro/Dollar 1.2871
Dollar/Yen 92.75
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan: Editing by Clarence Fernandez)
