* SPDR holdings down for a third consecutive day
* Gold may face consolidation; long-term trend intact
* Coming up: U.S. Fed releases Sept meeting minutes; 1800
GMT
By Rujun Shen
SINGAPORE, Oct 12 (Reuters) - Gold prices edged lower on
Tuesday, pressured by a rebound in the dollar, and gold might
enter a phase of consolidation after record-breaking rally.
The dollar held gains on Tuesday, after rallying against
the euro and yen on Monday when investors bet the greenback's
recent decline was too far and too fast. []
The weakening dollar has helped fuel the rally in most
commodities in the past few months, pushing gold to continuous
record highs and copper to its highest in more than two years.
"Fundamentally the story remains intact for gold. I still
think gold will trade at $1,500 and will trade higher than that
in the medium-term future," said a Singapore-based trader.
"But at the moment, i think the market is too long and too
bullish. We might see the rally capped and the downside may
expand a little further."
Spot gold <XAU=> was trading at $1,350.85 an ounce by 0330
GMT, down 0.2 percent from the previous close. Gold hit an
all-time high at $1,364.6 last week.
U.S. gold futures <GCZ0> also fell 0.2 percent, to $1,352.
Spot gold <XAU=> is expected to return to the Oct. 8 low of
$1,324.85 per ounce, as it could be rangebound between
$1,234.85 and $1,364.60 for a few trading sessions, said Wang
Tao, a Reuters market analyst. []
For a graphic showing the 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20101210085907.jpg
"We are likely to see some consolidation in the short term
after the strong rally, before prices head higher again. The
level around $1,300 would lend very strong support," said Hou
Xinqiang, an analyst at Jinrui Futures in China.
"So long as we continue to see disappointing data, which
points to a feeble economic recovery, the strength in gold will
remain."
A slowdown in economic growth in the world's developed
countries looks increasingly likely, the OECD said on Monday,
highlighting signs the recovery may now have peaked in the
United States. []
Investors are eyeing the minutes from the Federal Reserve's
September policy meeting, due later on Tuesday, for clues to
the possibility of further monetary easing by the central
government.
But speculation on the second round of quantitative easing
from the Fed has been priced in for the past few weeks, and the
market is now on the look-out for stimulating news, said
traders.
Holdings in the SPDR Gold Trust declined for a third
consecutive session to 1,287.327 tonnes by Oct. 11. []
Physical demand in Asia remains robust, as the seasonal
strong demand from India and China lends support, traders and
analysts said.
"We might see a little consolidation, but $1,340 is a good
support level where a lot of buying would emerge," said a Hong
Kong-based dealer.
Spot silver <XAG=> fell 0.4 percent to $23.19 an ounce,
down from a 30-year high of $23.65 hit on Monday.
Precious metals prices at 0330 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1350.85 -2.10 -0.16 23.29
Spot Silver 23.19 -0.10 -0.43 37.79
Spot Platinum 1692.50 9.35 +0.56 15.37
Spot Palladium 585.50 0.05 +0.01 44.39
TOCOM Gold 3571.00 35.00 +0.99 9.57
37957
TOCOM Platinum 4490.00 -12.00 -0.27 2.49
12215
TOCOM Silver 61.20 1.20 +2.00 18.38
1058
TOCOM Palladium 1551.00 2.00 +0.13 33.13
559
Euro/Dollar 1.3874
Dollar/Yen 82.04
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
