* Gold gives up early gains, firmer dollar weighs
* Gold could rise to $1,362 an ounce []
* Coming Up: U.S. Initial Claims; 1230 GMT
(Recasts)
By Lewa Pardomuan
SINGAPORE, Oct 21 (Reuters) - Gold ticked down in volatile
trade on Thursday as a rebound in the U.S. dollar ahead of a
G20 meeting and comments by U.S. Treasury Secretary Tim
Geithner overshadowed positive economic data from China.
The financial market was abuzz with talk of a grand bargain
by the Group of 20 countries to rebalance the global economy as
finance and central bank chiefs meet on Friday to discuss a
common path on managing currency, trade and economic imbalances
ahead of a meeting in Seoul next month. []
Spot gold <XAU=> hit a high of $1,349.05 an ounce before
slipping to $1,342.40 by 0558 GMT, down $1.10 from New York's
notional close. Prices had bounced higher on Wednesday
following reports the Fed would buy bonds to inject money into
the U.S. economy.
For a graphic showing the 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20102110081211.jpg
"After China increases the interest rates, I think the
focus is now on the G20. Will be a currency war? The market is
closely watching the dollar," said a physical dealer in Hong
Kong.
"Gold has failed to surpass $1,350, so that's why people
are a little bit disappointed."
The dollar rose on Thursday on short-covering after
comments by Treasury Secretary Geithner that major currencies
were roughly in alignment, but tempered its gains ahead of the
G20 meeting, which is likely to debate currency policies.
[]
Gold was more than 3 percent below a lifetime high around
$1,387 hit last week. It tumbled nearly 3 percent on Tuesday
following China's surprise announcement of an interest rate
hike.
China's growth ebbed in the third quarter and inflation
edged just a touch higher, showing the economy was strong but
far from overheating. It also suggested an interest rate rise
this week may be enough for now. []
"I am still predicting $1,400 by the end of the year," said
Mark Pervan, senior commodities analyst at ANZ in Melbourne,
adding that physical demand from India and China was expected
to support bullion.
"The recent tightening announcement by China has taken the
market a bit by surprise. But (it) doesn't derail the weak U.S.
dollar story and probably strong Chinese demand story."
The festival season in top consumer India is underway, with
Dhanteras -- the day jewellers register the year's highest gold
sales -- slated for early next month. []
U.S. gold futures for December delivery <GCZ0> was barely
changed at $1,343.4 an ounce.
"The GDP figures are actually a bit positive, with a
surprise on the upside. It could actually encourage a bit more
of risk-taking which could weigh on the dollar. That could, in
turn, be positive for gold," said a dealer in Singapore.
"I guess it's a confluence of factors which affect the
dollar. But I think gold may be well supported by the
likelihood of a monetary easing by the United States. On a
long-term basis, I would still see gold in the uptrend."
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P> said its holdings eased to 1,299.177 tonnes
by Oct 20 from 1,300.089 tonnes on Oct 19. The holdings hit a
record at 1,320.436 tonnes on June 29. []
Precious metals prices at 0558 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1342.40 -1.10 -0.08 22.52
Spot Silver 23.74 -0.16 -0.67 41.06
Spot Platinum 1673.25 -5.60 -0.33 14.06
Spot Palladium 583.60 -1.10 -0.19 43.92
TOCOM Gold 3509.00 1.00 +0.03 7.67
49092
TOCOM Platinum 4406.00 21.00 +0.48 0.57
13732
TOCOM Silver 62.30 0.30 +0.48 20.50
699
TOCOM Palladium 1534.00 29.00 +1.93 31.67
296
Euro/Dollar 1.3906
Dollar/Yen 81.13
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
(lewa.pardomuan@thomson reuters.com; +65 6870 3834; Reuters
Messaging: lewa.pardomuan.reuters.com@reuters.net))
