* Gold off intraday high but sentiment bullish
* For the technicals on gold, click []
* Coming Up: U.S. FOMC rate decision; 1815 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Aug 10 (Reuters) - Gold ticked lower on Tuesday
as early bargain hunting subsided, but investors bet the U.S.
Federal Reserve would take further steps to ease monetary
policy later in the day, boosting bullion's safe-haven appeal.
Researchers at the San Francisco Federal Reserve Bank said
there is a "significant" chance the U.S. economy will slip back
into recession in the next two years although a reversal is
unlikely in the next few months. []
Spot gold <XAU=> eased 30 cents to $1,199.70 an ounce by
0238 GMT. Bullion had fallen slightly on Monday as a firmer
dollar prompted investors to lock in profits ahead of a closely
watched statement by the Fed at 1815 GMT.
"Investors await the outcome of the FOMC meeting. The Fed
may announce plans for further quantitive easing to stimulate
the economy, which could benefit gold," said Ong Yi Ling,
investment analyst at Phillip Futures in Singapore.
"Should this occur, gold prices may tick up to $1,210. I
remain bullish on gold on a long term basis," said Ong,
referring to a high seen mid-July.
For a 24-hour gold technical outlook, see:
http://graphics.thomsonreuters.com/WT/20101008092933.jpg
U.S. gold futures for December delivery <GCZ0> were barely
changed at $1,201.8 an ounce.
Cash gold and U.S. futures struck a lifetime high in June
on worries the euro debt crisis was spreading and the U.S.
economy was slowing. Dismal U.S. jobs data on Friday fuelled
speculation the Fed could soon buy U.S. debt to support the
economy.
The euro <EUR=> slipped against the dollar while the Nikkei
<> edged up, but the market was split on whether the Fed's
meeting will take any new steps in quantitative easing. []
[]
Most investors seem to assume the Fed will sound more
cautious on the recovery, but there the agreement ends.
Silver and platinum group metals tracked equities higher.
Dealers noted light physical buying in Hong Kong but
consumers from mainland China were on the sidelines after
snapping up gold last week, when the government said it would
allow more banks to import and export gold due to growing
demand.
"I think sentiment is bullish after gold rises to these
levels. It's also important to note the Chinese government is
pushing people to buy gold instead of property," said a dealer
in Hong Kong.
"But I think Chinese buyers will wait and see at these
levels. If the price goes back down to $1,180, you may see
people coming back to buy."
Annual house price inflation in China fell in July for the
third month running under the impact of a government drive
against property speculation. []
Zijin Mining Group <2899.HK> <601899.SS> said a
government-ordered production suspension affecting two of its
mines in China's Shandong province would have an impact on its
annual output target. []
Precious metals prices at 0238 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1199.70 -0.30 -0.02 9.49
Spot Silver 18.31 0.02 +0.11 8.79
Spot Platinum 1544.75 4.75 +0.31 5.30
Spot Palladium 479.75 4.75 +1.00 18.31
TOCOM Gold 3323.00 -13.00 -0.39 1.96
16333
TOCOM Platinum 4308.00 -18.00 -0.42 -1.67
7459
TOCOM Silver 51.30 -0.40 -0.77 -0.77
233
TOCOM Palladium 1329.00 -17.00 -1.26 14.08
111
Euro/Dollar 1.3175
Dollar/Yen 85.85
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
