PRECIOUS-Gold steady as sell-off on dlr rally pauses

                                
 TOKYO, Oct 27 (Reuters) - Gold steadied slightly below $1,040
per ounce on Tuesday, after falling the previous day by more than
1 percent on a jump in the dollar from a 14-month low versus the
euro.
                                
 FUNDAMENTALS
                                
 * As of 0010 GMT, spot gold <XAU=> was up 0.1 percent at
$1,037.75 an ounce from New York's notional close of $1,037.10.
                                
 * Bullion hit a low of $1,036 earlier on Tuesday, its lowest
price since Oct. 6.
                                
 * It has lost about 3 percent since it hit a record high
above $1,070 on Oct. 14.
                                
 * Gold had rallied in the past two months as the dollar
steadily weakened, making bullion cheaper for non-dollar holders
and boosting investor interest in gold as a hedge.
                                
 * U.S. gold futures for December delivery <GCZ9> eased 0.4
percent to $1,038.40 an ounce after falling $13.60 or 1.3 percent
to $1,042.80 on Monday on the COMEX division of the New York
Mercantile Exchange.
                                
 * The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings fell 1.22 tonnes on
Monday to 1,106.874 tonnes. [GOL/SPDR]
                                
 MARKET NEWS
                                
 * The U.S. dollar rose broadly on Monday, rebounding from a
14-month low against the euro as falling stock and commodity
prices prompted investors to lock in recent gains in other
currencies. [USD/]
                                
 * The euro hit a 14-month high at $1.5064 <EUR=> on Monday
before reversing the gains to fall to $1.4855 by 0013 GMT.
                                
 * Japan's Nikkei stock average <.N225> fell 1 percent. [.T]
                                
 * U.S. stocks fell for a second straight session on Monday as
investors ditched home builders and financials on fears lawmakers
may let a federal home buyer tax credit expire, while commodity
shares succumbed to pressure from the higher U.S. dollar. [.N]
                                
 DATA, EVENTS
                                
 * The following data and events are expected on Tuesday:
<ECON>
                                
 - French October consumer confidence (0750 GMT)
                                
 - Italy October consumer confidence (0830 GMT)
                                
 - Euro zone Sept M3 money supply (0900 GMT)
                                
 - U.S. S&P/Case-Shiller Home Price Index for Aug (1300 GMT)
                                
 - U.S. consumer confidence for Oct (1400 GMT)
                                
 - U.S. building permits revisions for Sept (N/A)
                                
 RELATED NEWS
 >Gold hits 2-week low, under $1,040/oz as dlr jumps       [GOL/]
 >Most commods end down as dollar turns corner         [COM/WRAP]
 >Fink's ISAM to revive gold fund on client demand [ID:nLQ572385]
 >Pawnbroker H&T says gold buying boom to weaken    [ID:nLQ71322]
 >Iamgold increases 2009 gold production forecast [ID:nN26180735]
 >Mongolian Prime Minister tenders resignation     [ID:nSP491627]
                                
 PRICES
                                
 Precious metals prices at 0002 GMT
 Metal         Last      Change  Pct chg  Day ago pct  MA 30  RSI
 Spot gold    $1039.55    $2.45  +0.24%   +15.89%    $860.10 42
 Spot silver    $17.04   -$0.01  -0.06%   +42.24%     $11.29 38
 Spot plat    $1329.50   -$1.00  -0.08%    -2.13%   $1322.57 41
 TOCOM gold      3,092      -36  -1.15%    -2.12%      3,004 56
 TOCOM plat      3,950      -57  -1.42%    -2.59%      3,853 54
 Currencies
 Euro/dlr       $1.485  -$0.002  -0.11%    -0.95%
 Dlr/yen         92.22     0.03  +0.03%    +0.12%
 (Reporting by Risa Maeda; Editing by Edwina Gibbs)