* Bernanke pullback remarks weigh on economic sentiment
* Uncertainty about bailout on Greece pressures euro, gold
* iShares Silver Trust up 46 tonnes this week
(Recasts, updates comments, closing prices, adds NEW YORK
to dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Feb 10 (Reuters) - Gold prices slipped on
Wednesday as Federal Reserve Chairman Ben Bernanke's comments
about stimulus pullback dimmed the outlook of the nascent
economic recovery, denting bullion's investment appeal.
Uncertainty over a possible bailout of debt-stricken Greece
also prompted bullion investors to take profits.
Gold had rallied $20 in the two previous sessions on easing
fiscal worries in some euro zone countries, and after China's
biggest sovereign wealth fund disclosed it held a stake in gold
exchange-traded funds and some top gold producers.
"Gold is down on the Bernanke comment because it boosts the
dollar by talking about removing government stimulus as well as
easy monetary policy," said Tom Hartmann, analyst at
California-based Altavest.
Bernanke detailed how the Fed would likely begin tightening
monetary policy by removing cash from the financial system
before it turns to raise benchmark short-term interest rates,
even as he stressed it was not yet time to do so.
[]
Hartmann said that investors would likely sell into
possible near-term rallies in gold because the Fed's monetary
exit removed the possibility of inflation as it started pulling
back economic stimulus.
U.S. gold futures for April delivery <GCJ0> on the COMEX
division of the NYMEX settled down 90 cents at $1,076.30 an
ounce.
Spot gold <XAU=> was at $1,073.85 an ounce at 2:31 p.m. EST
(1931 GMT), against $1,076.95 late in New York on Tuesday.
The precious metal rose as high as $1,082.10 in earlier
trade as the prospects of an imminent rescue package for Greece
lifted the euro.
"Gold is tracking the euro/dollar tick by tick," said
Deutsche Bank trader Michael Blumenroth. "You just have to make
up your mind about currency moves, and then react to that."
The dollar firmed against the euro, weighed down by
uncertainty a day before a European Union summit to explore a
possible bailout of Greece. []
Dollar strength curbs gold's appeal as an alternative asset
and makes dollar-priced commodities more expensive for holders
of other currencies.
BULLION, COMMODS OFF LOWS
The greenback, however, pared gains later in the session,
and that lifted gold and the commodities complex off their
lows. The Reuters/Jefferies CRB <.CRB> commodities index turned
higher, led by oil's gains.
Among other precious metals, silver <XAG=> was at $15.24 an
ounce against $15.41, tracking losses in gold.
Holdings of the world's largest silver-backed ETF, New
York's iShares Silver Trust <SLV>, have risen nearly 46 tonnes
this week, suggesting investment demand for the precious metal
is strong.
Elsewhere platinum <XPT=> was at $1,510 an ounce against
$1,502, and palladium <XPD=> at $411 against $415.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCJ0> 1076.30 -0.9 -0.1 1096.20 -1.8
US silver <SIH0> 15.300 -0.135 -0.9 16.845 -9.2
US platinum <PLJ0> 1512.90 10.50 0.7 1471.00 2.8
US palladium <PAH0> 413.35 -3.25 -0.8 408.85 1.1
Prices at 2:32 p.m. EST (1932 GMT)
Gold <XAU=> 1073.55 -3.40 -0.3 1096.35 -2.1
Silver <XAG=> 15.27 -0.14 -0.9 16.84 -9.3
Platinum <XPT=> 1510.50 8.50 0.6 1465.50 3.1
Palladium <XPD=> 412.00 -3.000 -0.7 405.50 1.6
Gold Fix <XAUFIX=> 1069.50 -6.00 -0.6 1104 -3.1
Silver Fix <XAGFIX=> 15.60 40.00 2.6 16.99 -8.2
Platinum Fix <XPTFIX=> 1511.00 12.00 0.8 1466 3.1
Palladium Fix<XPDFIX=> 416.00 0.00 0.0 402 3.5
(Reporting by Frank Tang and Jan Harvey)
