* Gold slips to 3-week low before bouncing
* Dollar, stocks eyed ahead of U.S. payrolls data
* SPDR Gold holdings fall 1.22 tonnes on Monday []
(Changes dateline, updates prices, quotes)
By Lewa Pardomuan
SINGAPORE, Oct 27 (Reuters) - Gold rebounded from its
weakest level in three weeks on Tuesday as the U.S. dollar took
a break after a rally, spurring demand from bargain hunters and
lifting other precious metals.
Bullion has gained in the past two months to hit a record
around $1,070 an ounce on Oct. 14 as declines in the U.S.
dollar raised the metal's safe-haven appeal. Gold is seen as a
hedge against both inflation and a depreciating dollar.
Cash gold <XAU=> added $4.85 an ounce to $1,041.95 by 0618
GMT, having hit an intraday low of $1,036, its lowest level
since Oct. 6.
"I guess the dollar's movement will still be the key factor
to look at. The previous record highs around $1,030 should come
in as key supports for now," said Adrian Koh, an analyst at
Phillip Futures in Singapore.
"Physical buyers will probably want the downward momentum
to continue, but there aren't really any clear signals yet,"
said Koh, referring to demand from the jewellery sector.
U.S. gold futures for December delivery <GCZ9> barely
chnaged at $1,042.60 an ounce after falling $13.60 or 1.3
percent to $1,042.80 on Monday.
The dollar slipped against a basket of currencies on
Tuesday after posting its best daily gain since September as
investors unwound short dollar positions following a fall in
stocks and commodities. []
The dollar index <.DXY>, a measure of the greenback's
performance against six other major currencies, fell 0.2
percent to 75.924, but above a 14-month low of 74.94 set last
week. Despite the current rebound in prices, an analyst
at a Japanese trading company expected gold to fall to $1,030,
given the recent market trend of stocks falling ahead of U.S.
monthly payrolls data at the beginning of each month.
While falls in stock markets usually boost gold's
safe-haven appeal, investors have recently preferred the dollar
itself as a safer place to park their money.
"In the past two months, stocks peaked out and fell before
the U.S. jobs data was out, regardless of whether the actual
data were bullish or bearish," said the analyst, adding that
the drop could happen again due to uncertainty in the global
economy. "It's an event risk we should be prepared for," he
said. Another drag might come from a sell-off in silver,
which started its ascent before gold, buoyed by expectations
that a global economic recovery would boost demand from
industrial users, traders said.
Speculative positions in U.S. gold and silver futures both
eased from peaks but stayed at high levels. []
Underlining the weakening mood, data confirmed a further
outflow of money from 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, down about 3 tonnes from
the recent high earlier this month. []
Precious metals prices at 0618 GMT
Metal Last Change Pct chg Day ago pct MA 30
RSI Spot gold $1041.95 $4.85 +0.47% +16.16% $860.10
42
Spot silver $17.17 $0.12 +0.70% +43.32% $11.29
38
Spot plat $1333.00 $2.50 +0.19% -1.88% $1322.07
41
COMEX gold $1040.00 -$2.30 -0.22% -1.50% $1030.84
56
TOCOM gold 3,094 -34 -1.09% -2.06% 3,004
54
TOCOM plat 3,960 -47 -1.17% -2.34% 3,853
xx
Currencies
Euro/dlr $1.490 $0.003 +0.23% -0.62%
Dlr/yen 92.05 -0.15 -0.16% -0.07%
(Additional reporting by Risa Maeda in TOKYO; Editing by
Clarence Fernandez)
