* Dollar weakness against euro boosts bullion price
* Barrick, AngloGold Ashanti may accelerate hedge buyback
* Gold higher despite dip in SPDR Gold Trust holdings
(Recasts, updates comments, closing prices, market activity,
adds NEW YORK to dateline)
By Frank Tang and Rebekah Curtis
NEW YORK/LONDON, Nov 2 (Reuters) - Gold prices ran above
$1,060 an ounce on Monday as robust U.S. economic data boosted
risk appetite and pressured the dollar, enhancing the metal's
appeal as a hedge against a falling greenback.
Buying sentiment improved after the world's biggest gold
producer Barrick Gold <ABX.TO> and AngloGold Ashanti <ANGJ.J>,
the world's No.3 gold miner, said they might buy back their
hedge positions ahead of plan. Such a move would indicate the
companies expect gold prices to rise. []
Jonathan Jossen, COMEX gold options floor trader, noted
that buying interest in gold increased on the first trading day
of a new fiscal year for many U.S. investment funds.
"There (is) surely more activity in the gold options"
because of a spike in volatility in the equities market, Jossen
said. The CBOE Volatility index, a key measure of market
volatility, stayed above 30 after last Friday's surge as stocks
slumped.
Spot gold <XAU=> was at $1,055.25 an ounce at 2:17 p.m. EST
(1917 GMT), compared with $1,044.40 late in New York in the
previous session.
Earlier in the session, bullion rose above $1,060 an ounce,
closing in toward its record high of $1,070.40.
U.S. December gold futures <GCZ9> settled up $13.60, or 1.3
percent, at $1,054 an ounce on the COMEX division of NYMEX.
Data released earlier in the day showed that U.S.
manufacturing activity grew in October and that pending home
sales were encouraging. []
Gold started showing some signs of independent strength
while currency markets were muted.
India's front-month gold futures contract on the Multi
Commodity Exchange of India Ltd (MCX) struck a record high of
16,099 rupees per 10 grams on Monday, while gold priced in
euros <XAUEUR=R> also rallied strongly.
"The dollar helped today, but overall gold seems to have
some strength on its own. There's still some room on the
upside," said Alexander Zumpfe, precious metals trader at
Heraeus.
The dollar fell in choppy trade against the euro <EUR=>,
lending support to the metal.
Last week, gold registered its first weekly loss since the
week of Sept. 25 after dollar weakness helped to spur four
consecutive weeks of gains.
Analysts were broadly upbeat on the market's chances of
eking out more gains due to expectations that the dollar will
decline further.
"On a relative basis 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," said Walter de Wet, analyst at Standard Bank
in London.
ANGLOGOLD LOWERS OUTPUT TARGET
AngloGold Ashanti lowered its annual production target for
the second straight quarter after suspending output at a South
African mine for safety checks. []
In an interview with Reuters at the London Bullion Market
Association conference, Anglo said it may accelerate closing
its hedgebook if conditions are right. [].
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings fell 0.915 tonnes on
Friday, making the total weekly decline 4.575 tonnes.
In other precious metals, silver <XAG=> rose in league with
gold to trade at $16.40 from $16.27 late on Friday in New York.
Platinum <XPT=> was at $1,332.50 from $1,322.50 and palladium
<XPD=> was at $321.50 from its previous session late quote of
$318.50.
Close Change Pct 2008 YTD
Chg Close % Chg
US gold <GCZ9> 1054.00 13.6 1.3 884.3 19.2
US silver <SIZ9> 16.440 0.185 1.1 11.295 45.6
US platinum <PLF0> 1338.10 11.80 0.9 941.50 42.1
US palladium <PAZ9> 326.35 3.10 1.0 188.70 72.9
Prices at 2:01 p.m. EST (1901 GMT)
Gold <XAU=> 1053.10 8.70 0.8 878.20 19.9
Silver <XAG=> 16.31 0.04 0.2 11.30 44.3
Platinum <XPT=> 1328.00 5.50 0.4 924.50 43.6
Palladium <XPD=> 320.00 1.500 0.5 184.50 73.4
Gold Fix <XAUFIX=> 1062.00 10.00 1.0 836.50 27.0
Silver Fix <XAGFIX=> 16.58 1.00 0.1 14.76 12.3
Platinum Fix <XPTFIX=> 1330.00 4.00 0.3 1529 -13.0
Palladium Fix<XPDFIX=> 324.00 2.00 0.6 365.0 -11.2
(Additional reporting by Veronica Brown in London; editing by
Jim Marshall)
