(Updates prices, adds activity in physical sector)
By Lewa Pardomuan
SINGAPORE, April 30 (Reuters) - Gold extended losses on
Wednesday, hovering near a three-month low hit the previous
day, after the dollar surged against the euro, prompting
investors to liquidate some of their holdings.
Investors await the outcome of a meeting by the U.S.
Federal Reserve amid expectations it is ready to signal a pause
in its interest-rate cutting, which in theory will support the
dollar but reduce gold's appeal as an alternative investment.
Gold <XAU=> fell to $872.55/873.25 an ounce from
$873.55/874.75 an ounce late in New York on Tuesday, when it
tumbled to $868.20 an ounce, its lowest since late January, on
a combination of a rise in the dollar and a fall in oil.
"I'd suggest we're probably looking at a range for about
$868 as the next support, with that resistance now at the $875
level," said Darren Heathcote of Investec Australia in Sydney.
"There's been physical buying around. I'd suggest that
given that we are $60 or so lower than we were about a week
ago, it would have spurred some physical buying, thinking
there's a possibility of a further bounce."
Gold has lost more than 15 percent in value since spiking
to a record high at $1,030.80 on March 17, but the drop has
attracted physical buying from jewellers, which may offer
support for gold, at least for now.
In the physical sector, jewellery makers from India to
Indonesia have snapped up purchases of bullion after it dived
to a three-month low, pushing up premiums for gold bars in
Southeast Asia. []
Dealers saw buying from India, the world's largest gold
consumer ahead of a religious festival in May, as well as
demand from jewellers in Thailand, Vietnam and Indonesia, which
is Southeast Asia's main buyer.
The Federal Open Market Committee will unveil its decision
around 1815 GMT on Wednesday, when it is expected to cut rates
by a quarter percentage point to 2 percent, which would take
its total rate slashing over the past seven months to 3.25
percentage points.
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange fell $0.4 an ounce to
$876.5 an ounce.
The dollar barely changed at 104.05 yen <JPY=>, while the
euro was flat at $1.5570 <EUR=>, holding near a one-month low
of $1.5540 hit the previous day.
Spot platinum <XPT=> fell to $1,913.50/1,933.50 an ounce
from $1,918/1,938 late in New York.
Most active Tokyo platinum futures <0#JPL:> fell 209 yen
per gram to 6,241 yen but were off an intraday low of 6,158
yen.
Silver <XAG=> edged down to $16.50/16.57 an ounce from
$16.51/15.59 an ounce. Spot palladium <XPD=> inched down to
$420.50/428.50 an ounce from $421/429 an ounce.
Precious metals prices at 0748 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 872.80 2.75 +0.32 4.82
Spot Silver 16.51 -0.01 -0.06 11.78
Spot Platinum 1915.50 2.00 +0.10 26.02
Spot Palladium 420.50 2.00 +0.48 14.27
TOCOM Gold 2944.00 -77.00 -2.55 -3.79
52847
TOCOM Platinum 6227.00 -223.00 -3.46 16.63
21866
TOCOM Silver 558.00 -17.70 -3.07 3.14
1060
TOCOM Palladium 1441.00 -69.00 -4.57 6.66
2363
Euro/Dollar 1.5585
Dollar/Yen 103.91
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Ben Tan)
