* Silver falls more than 3 pct; platinum group metals
tumble
* Gold to retreat to $1,385 - technicals []
* Coming up: U.S. weekly ECRI index; 1430 GMT
By Rujun Shen
SINGAPORE, Nov 12 (Reuters) - Gold fell more than one
percent on Friday in a broad retreat triggered by a stronger
dollar, talk about Irish sovereign debt at the G20 summit and
speculation China may again hike interest rates to tame
inflation.
Spot gold lost as much as 1.9 percent to $1,382.99 an
ounce, and recovered slightly to $1,383.35 by 0536 GMT,
piercing below a 10-day moving average of $1,383.60.
Spot silver <XAG=> fell more than three percent to $26.65 an
ounce, and was trading at $26.76, on course for a third
consecutive week of gains.
"Everyone is watching the G20, and gold is chasing the
dollar," said Ronald Leung, a physical dealer at Lee Cheong
Gold Dealers in Hong Kong, "We can see some consolidation from
here, in a range of $40 dollars below $1,420." []
Metals, grains and oil sold off broadly on Friday on
worries about a possible new round of Chinese monetary
tightening, and a weaker euro linked to fears about Ireland's
ability to meet debt obligations and the temptation to cash in
on gains.
Chinese consumer price inflation rose a faster than
expected 4.4 percent in October, a 25-month high.
"The rumor that China will raise interest rates has been
circulating this week," said Sun Lei, a metals analyst at
Galaxy Futures in Beijing.
Also weighing on gold was strength in the dollar, which
rose to a five-week high against a basket of currencies <.DXY>,
as the euro hit six-week lows on the dollar on Friday. []
"If the inverse correlation between the dollar and gold
strengthens, we can see the dollar weigh on gold again," said
Ong Yi Ling, an analyst at Phillip Futures.
For a graphic on the correlation between gold and dollar,
click:
http://graphics.thomsonreuters.com/AS/0810/RS_20101211115542.jp
g Some investors sold to lock in gains ahead of the holiday
season, after gold prices have risen nearly 18 percent in the
past three months.
But the fall is unlikely to be sharp, traders said.
"I think gold will find a base soon, as there is some
physical buying at this level," said a Singapore-based trader,
expecting the support level at $1,390.
Platinum group metals also fell sharply, with platinum
<XPT=> falling nearly three percent to a one-week low of
$1,704.75 and palladium down nearly 3 percent to $689.5.
Palladium in headed for a 1.3 percent weekly rise,
stretching the winning streak to nine weeks.
The Relative Strength Index, an indicator of trade
interest, on all precious metals fell below 70, above which is
seen as the overbought territory. RSI on platinum fell to
50.27, its lowest in more two months.
Industrial metals also fell broadly, with Shanghai copper
and zinc futures touching daily downside limits and London
copper slip over two percent. []
Precious metals prices at 0536 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1383.35 -26.04 -1.85 26.25
Spot Silver 26.76 -0.99 -3.57 59.00
Spot Platinum 1704.75 -47.25 -2.70 16.21
Spot Palladium 691.72 -18.00 -2.54 70.58
TOCOM Gold 3673.00 -59.00 -1.58 12.70
76289
TOCOM Platinum 4564.00 -136.00 -2.89 4.18
19913
TOCOM Silver 71.10 -2.10 -2.87 37.52
3509
TOCOM Palladium 1836.00 -54.00 -2.86 57.60
1308
Euro/Dollar 1.3610
Dollar/Yen 82.41
TOCOM prices in yen per gram. Spot prices in $ per ounce.
