* IMF says will open up sale of 191.3 T gold to open market
* Dollar strengthens after Janaury Fed minutes
* Implats reiterates output forecast to 2014
(Updates, adds comment, changes dateline from TOKYO)
By Jan Harvey
LONDON, Feb 18 (Reuters) - Gold slipped towards $1,100 an
ounce in Europe on Thursday after the IMF's announcement that it
was opening up a planned sale of 191.3 tonnes of bullion to the
open market, and as the dollar strengthened.
The IMF said it will soon begin sales of the remainder of
the 403.3 tonnes of bullion it approved for sale in 2008 on the
open market. []
Earlier sales have been made off-market, most notably to
India, but also to Sri Lanka and Mauritius.
Spot gold <XAU=> was bid at $1,103.90 an ounce at 1013 GMT,
against $1,106.00 late in New York on Wednesday. In that session
gold touched a one-month high of $1,126.85 an ounce, while
euro-priced gold <XAUEUR=R> hit a record 823.04 euros an ounce.
The IMF announcement and dollar strength have since
pressured prices from those highs. Analysts say the fact the
gold has not been snapped up by central banks since it became
available for sale could weigh on sentiment.
"Since India bought a big chunk of gold in October last
year, (the gold) has been out there for sale and nothing has
happened," said Saxo Bank senior manager Ole Hansen.
"It could be viewed quite negatively that central banks, who
obviously would have been favoured as buyers for the remaining
gold, have found current (price) levels unattractive," he added.
"That has put the market a bit under pressure."
The IMF said the open-market sales "will be conducted in a
phased manner over time" to avoid disruptions to the gold
market. The Fund added that the door was still open for central
banks to keep buying gold directly from it. []
Sri Lanka's central bank governor said his bank was unlikely
to buy more gold from the IMF right now as the island nation has
already reached its required reserve level. []
Analysts added that the downward price move in gold on
Thursday morning has been relatively subdued, given the metal's
hefty gains earlier in the week.
DOLLAR STRENGTHENS
Gold was also pressured by fresh strength in the dollar,
which rose towards a seven-month high versus a currency basket
after the minutes of the Federal Reserve's January policy
meeting showed officials discussed strategies for withdrawing
montary stimulus. []
The dollar had already benefited on Wednesday from stronger
than expected U.S. data.
"Any signs of a rapid improvement in the U.S. economy are
supportive for the U.S. dollar, as it heightens future inflation
risks and calls for action from the Fed," said VTB Capital
analyst Andrey Kryuchenkov in a note.
Strength in the U.S. unit curbs gold's appeal as an
alternative asset and makes dollar-priced commodities more
expensive for holders of other currencies.
The stronger dollar pressured other commodities, with oil
prices falling more than $1 a barrel to their lows. Gold tends
to track crude prices, as the metal can be bought as a hedge
against oil-led inflation. []
Investment demand remained lacklustre, with the world's
largest gold-backed exchange-traded fund, the SPDR Gold Trust
<GLD>, reporting no change to its holdings on Feb. 17.
[]
Among other precious metals, silver <XAG=> was bid at $15.81
an ounce against $15.84, platinum <XPT=> was at $1,510.50 an
ounce against $1,524.50, and palladium <XPD=> was at $427
against $433.50.
Impala Platinum <IMPJ.J>, the world's second largest
platinum miner, said its output rose 2 percent to 895,000 ounces
in the first half of the year, and reiterated plans to grow
output to 2.1 million ounces a year by 2014. []
(Reporting by Jan Harvey; Editing by Keiron Henderson)
