* Gold falls with equities, commods as risk appetite dips
* Bernanke's testimony seen as key to Fed's next move
* CFTC sets date for metals position limits hearing
(Recasts, Updates comments, closing prices, adds NEW YORK
to dateline, second byline)
By Frank Tang and Veronica Brown
NEW YORK/LONDON, Feb 23 (Reuters) - Gold fell toward $1,100
an ounce on Tuesday as a resurgent dollar driven by weak U.S.
consumer confidence sapped investor risk appetite across the
board.
Signs of global monetary tightening to guard against
inflation, currency volatility due to worries about the debt of
Greece, and liquidation related to COMEX March option
expiration on Tuesday also weighed down on prices.
Bullion, traditionally seen as a safe haven in economic
uncertainties, has been moving in tandem with asset classes
that are perceived riskier in nature, taking the lead from
equities and other commodities such as oil.
"There are a lot of similarities between gold and all other
markets, which are moving virtually the same way according to
risk appetite," said Rick Bensignor, chief market strategist at
broker-dealer Execution LLC.
Spot gold <XAU=> was at $1,102.05 an ounce by 3:49 p.m. EST
(2049 GMT), compared with $1,113.60 quoted late in New York on
Monday, some 2.5 percent off Monday's one-month highs.
U.S. April gold futures <GCJ0> settled down $9.90 at
$1,103.20.
Bensignor said that April should bounce after falling
toward key technical support in the $1,098 to $1,094 an ounce
area, which connected its record high and peaks in January and
February peaks.
The dollar rose against the euro and a basket of currencies
as falling risk appetite boosted the greenback after U.S.
consumer confidence fell in February to the lowest in 10
months. [] []
Dealers and analysts said attempts at rallies were failing
as the market focused on U.S. monetary policy after the Federal
Reserve tightened its emergency lending rate last week.
"The common denominator here is the dollar strengthening,
particularly against the euro," said Robin Bhar, an analyst at
Credit Agricole CIB. "There is probably a bit of buying of the
dollar or short-covering -- the market is just a bit jittery
ahead of what Bernanke says."
San Francisco Federal Reserve Bank President Janet Yellen
said the U.S. economy still needed extraordinary low interest
rates as inflation was "undesirably low."
Bernanke will give testimony to Congress on Wednesday and
Thursday.
Falling crude oil prices and broad-based decline in
commodities also weighed down on gold's inflation hedge appeal.
Oil dropped about 1.5 percent to $79 a barrel.
James Steel, chief commodities analyst at HSBC, said that
commodities such as oil seemed to have reached a near-term
peak, lessening support to gold.
CFTC HEARING DATE SET
In regulatory news, the U.S. Commodity Futures Trading
Commission said on Tuesday it will hold a previously announced
public meeting on March 25 to examine whether position limits
are needed for gold, silver and copper futures markets.
[]
While bullion fell with other key commodities last week
after the Fed's emergency lending move, some analysts said the
outlook remained constructive for gold, which as a non-interest
rate bearing asset benefits from a low-rate environment.
Dealers also said gold was benefiting in non-dollar terms
from sovereign risks surrounding some euro zone countries --
notably Greece. Gold priced in euros stayed near a record high
hit last week <XAUEUR=R>.
In other precious metals, silver <XAG=> fell in line with
gold to $15.83 per ounce from $16.20 quoted late in New York on
Monday. Platinum <XPT=> was at to $1,510 from $1,521.50, while
palladium <XPD=> stood at $428.50 from $440.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCJ0> 1103.20 -9.9 -0.9 1096.20 0.6
US silver <SIH0> 15.888 -0.334 -2.1 16.845 -5.7
US platinum <PLJ0> 1510.30 -21.60 -1.4 1471.00 2.7
US palladium <PAH0> 434.00 -8.10 -1.8 408.85 6.2
Prices at 3:46 p.m. EST (2046 GMT)
Gold <XAU=> 1102.50 -11.10 -1.0 1096.35 0.6
Silver <XAG=> 15.80 -0.40 -2.5 16.84 -6.2
Platinum <XPT=> 1512.00 -9.50 -0.6 1465.50 3.2
Palladium <XPD=> 430.00 -10.000 -2.3 405.50 6.0
Gold Fix <XAUFIX=> 1107.00 -5.00 -0.4 1104 0.3
Silver Fix <XAGFIX=> 16.10 -34.00 -2.1 16.99 -5.2
Platinum Fix <XPTFIX=> 1518.00 21.00 1.4 1466 3.5
Palladium Fix<XPDFIX=> 438.00 7.00 1.6 402 9.0
(Additional reporting by Lewa Pardomuan in Singapore; Editing
by Lisa Shumaker)
(Reporting by Frank Tang)
