* IMF to start sale of 191.3 T gold to open market
* Dollar strengthens after January Fed minutes
* Implats reiterates output forecast to 2014
(Releads, updates prices, adds comment)
By Jan Harvey
LONDON, Feb 18 (Reuters) - Gold steadied on Thursday,
recovering earlier losses, as the dollar pared gains versus the
euro and traders broadly shrugged off the IMF's news that it
would begin sales of 191.3 tonnes of gold to the open market.
Spot gold <XAU=> was bid at $1,105.80 an ounce at 1203 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.
Prices slipped as low as $1,097.80 an ounce after the IMF
said it will begin sales of the rest of the 403.3 tonnes of gold
it previously approved for sale on the open market, but later
recovered those losses. []
"The IMF (sales) shouldn't be particularly disruptive," said
Daniel Major, an analyst at RBS Global Banking & Markets. "The
market is expecting at least some of that 191 tonnes to be sold
through off-market transactions."
"Although it is an interesting story, it isn't having an
enormous impact," he added.
Earlier sales have been made off-market, most notably to
India, but also to Sri Lanka and Mauritius. Analysts say the
fact the remaining 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. []
DOLLAR STRENGTHENS
Gold stayed under pressure from the firmer dollar, which
rose towards seven-month highs versus a currency basket after
the minutes of the Federal Reserve's latest meeting showed
officials discussed strategies for withdrawing monetary
stimulus. []
However, the euro rise from lows versus the U.S. unit has
allowed gold prices to recover. 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. []
Among other precious metals, silver <XAG=> was bid at $15.82
an ounce against $15.84, platinum <XPT=> was at $1,509 an ounce
against $1,524.50, and palladium <XPD=> was at $428.50 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 Sue Thomas)
