* Gold reverses slight gains on IMF gold sale plans
* Limited impact on medium-term, IMF sale expected
* WGC sees continued investment for the bullion in 2010
(Recasts with market reaction to IMF planned sale)
By Chris Kelly and Jan Harvey
NEW YORK/LONDON, Feb 17 (Reuters) - Gold fell over 1
percent late on Wednesday, reversing early gains after the
International Monetary Fund said it would begin open market
gold sales, but limited price impact is seen for the bullion.
Spot gold <XAU=> fell $13.05, or 1.17 percent, to a low of
$1,105.75 an ounce after the IMF announced the sale of 191.3
tonnes of gold under a program launched last year to raise
money for lending. []
It later rose to bid at $1,108.10 at 5:25 p.m. EST (2225
GMT) against $1,118.95 late in New York on Tuesday.
"This is probably a knee-jerk reaction. At the end of the
day, the sales from the IMF are well-known," said Jacob Oubina,
senior currency strategist at Forex.com. "In the medium-term, I
don't think this is going to have a discernible impact."
Spot gold earlier on Wednesday hit a peak of $1,126.85 an
ounce, its highest since Jan. 20, while euro-priced gold
<XAUEUR=R> rose to a record 820.84 euros an ounce on a positive
outlook for gold investment demand.
Gold has posted hefty gains over the past week on growing
concerns over the financial health of debt-laden Greece.
U.S. gold futures for April delivery <GCJ0> on the COMEX
division of the New York Mercantile Exchange ended 30 cents
higher at $1,120.10 an ounce.
Commodities in general and gold in particular are still
benefiting from fresh investment. Billionaire investor George
Soros' hedge fund more than doubled its bet on gold prices in
the fourth quarter, an SEC filing showed. []
Pension funds started investing actively in gold last year
viewing the metal as a safe long-term investment, the head of
the World Gold Council told Reuters. []
"Investment demand from the United States and a lack of
selling out of Asia are pushing gold up," said Standard Bank
analyst Walter de Wet, adding that a fall in net long positions
in New York gold futures suggested gold had room to rise.
"For most of these commodities, speculative length has
declined substantially, so there is room for more money to flow
in," he said.
OIL CLIMBS
Among other commodities, oil prices extended the previous
session's 3.9 percent gains toward $78 a barrel. Gold tends to
track crude prices, as the metal can be bought as a hedge
against oil-led inflation. []
The World Gold Council said in its hotly anticipated Gold
Demand Trends report for the fourth quarter of 2009 that
investment appetite for gold was expected to stay firm, though
overall gold demand fell 11 percent in 2009. []
Global central banks will be net gold buyers in 2010 as
they review their reserves policies, the head of the WGC told
Reuters on Wednesday. []
India remained the world's No. 1 gold consumer, it said,
with fourth-quarter consumption rising 13 percent to 180.7
tonnes year-on-year as wedding and festive demand peaked.
India's gold imports for 2010 may rebound to 550 tonnes as
prices steady and the economy revives, a senior official at a
trade body told Reuters on Wednesday. []
Among other precious metals, silver <XAG=> tracked gold
lower at $15.87 an ounce against $16.12. Platinum traded <XPT=>
at $1,531.50 an ounce versus $1,118.95, and palladium <XPD=> at
$432.50 versus $430.50.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCJ0> 1120.10 0.3 0.0 1096.20 2.2
US silver <SIH0> 16.098 -0.050 -0.3 16.845 -4.4
US platinum <PLJ0> 1537.10 -0.60 0.0 1471.00 4.5
US palladium <PAH0> 438.00 5.55 1.3 408.85 7.1
Prices at 5:36 p.m. EST (2236 GMT)
Gold <XAU=> 1086.55 2.10 0.2 1096.35 -0.9
Silver <XAG=> 15.87 0.03 0.2 16.84 -5.8
Platinum <XPT=> 1531.50 7.00 0.5 1465.50 4.5
Palladium <XPD=> 432.50 -1.000 -0.2 405.50 6.7
Gold Fix <XAUFIX=> 1119.00 0.75 0.1 1104 1.4
Silver Fix <XAGFIX=> 16.21 39.00 2.5 16.99 -4.6
Platinum Fix <XPTFIX=> 1542.00 6.00 0.4 1466 5.2
Palladium Fix<XPDFIX=> 440.00 2.00 0.5 402 9.5
(Reporting by Alonso Soto; Editing by Marguerita Choy)
