(Refiles to fix headline typo)
* Gold steady below record high, sentiment buoyant
* Gold to retrace to $1,265/ounce-technicals
[]
* Silver to rise to $21.20/ounce -technicals
[]
* Coming up: U.S. Sept housing market index; 1400 GMT
By Rujun Shen
SINGAPORE, Sept 20 (Reuters) - Spot gold held steady on
Monday below a record high, and market sentiment stayed buoyant
on speculation of more quantitative easing in the United
States, as investors worry about the economic recovery.
Weak data out of the U.S. on Friday helped push gold to a
new all-time high. Underlying U.S. inflation pressures were
muted in August and consumer morale hit a 13-month low this
month, keeping alive fears of deflation and spurring bets on
further monetary easing. []
"For today at least, the market will continue to speculate
on more quantitative easing ahead of the Federal Reserve
meeting on Tuesday, which should provide some support to gold,"
said Ong Yi Ling, an analyst at Philip Futures.
To fuel more economic uncertainties, a range of European
data on manufacturing, consumer confidence and Germany's
business climate is expected to add to evidence of a slowdown
in recovery.
The market will also be watching for any comment from
European Central Bank policymakers about the economic outlook.
For a rundown of key data and events, click []
Spot gold <XAU=> edged up 0.1 percent to $1.277.6 an ounce
by 0301 GMT, just below the all-time high of $1,282.75 hit on
Friday.
U.S. gold futures for December delivery <GCZ0> rose 0.1
percent to $1,278.9 an ounce.
Spot gold <XAU=> may retrace to $1,265 per ounce as a small
five-wave cycle is seen over the Friday high of $1,282.75,
according to Wang Tao, a Reuters market analyst. []
Holdings in the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust <GLD.P> rose 6.079 tonnes to 1,300.825
tonnes by Sept 17, the highest since the beginning of the
month. []
On the physical market, demand is expected to stay strong
in the next few months, especially out of China, dealers said.
"We expect more physical demand from India and China. The
year-end holiday season should be good for the physical
market," said Peter Fung, head of dealing at Wing Fung Precious
Metals.
"The jewellery demand from China should be good from now
through the year-end."
Spot silver <XAG=> rose 0.3 percent to $20.83 an ounce,
after reaching $20.99, its highest in the past two-and-a-half
years, with the March 2008 peak of $21.24 in sight.
"We see increasing uncertainties in the market, because
silver has rallied so much," said Ong of Philip Futures. "If
the rally loses steam, we can see possibly a steep correction
for silver. That will be the downside risk."
The support level would be at $20.50 in the short term, she
added.
The Relative Strength Index, or RSI, rose to a one-year
high of 77.785, showing the market was already overbought.
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its holdings rose to 9,381.74
tonnes by Sept 17 from 9,343.69 tonnes on Sept 16.
[]
Precious metals prices at 0301 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1277.60 1.65 +0.13 16.60
Spot Silver 20.83 0.07 +0.34 23.77
Spot Platinum 1616.00 5.45 +0.34 10.16
Spot Palladium 541.75 1.87 +0.35 33.60
Euro/Dollar 1.3066
Dollar/Yen 85.67
Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
