* Gold softens below record, physical buying limited
* Technicals point downward to $1,268/oz []
* Coming Up: U.S. cnsumer confidence Sep; 1400 GMT
(Recasts, updates prices, adds quote)
By Maytaal Angel
LONDON, Sept 28 (Reuters) - Gold fell on Tuesday as
investors paused for breath and awaited economic data after
betting the metal up to a record $1,300 an ounce in the previous
session.
Silver was off a 30-year high, while platinum and palladium
tracked stock markets lower. [] []
Spot gold <XAU=> traded at $1,288.25 an ounce at 1223 GMT
versus $1,296.05 late in New York on Monday, having struck a
record on concerns over the global economic recovery and a
weaker dollar.
U.S. gold futures for December delivery <GCZ0> fell $8.9 to
$1,289.80 an ounce. The contract high on Monday was below the
record at $1,301.60 set on Friday. []
"It (gold) is just having trouble getting through $1,300, it
was probably just in need of a period of consolidation," said
Stephen Briggs, analyst at BNp Paribas.
He added the metal will likely track higher in due course
given investors, rather than buy other assets, are
psychologically geared to buy gold in the context of economic
uncertainty, inflation fears and quantitative easing.
Gold's retreat earlier this session was initially sparked by
a rebound in the U.S. dollar, which dented its appeal as an
alternative currency. But while the dollar has since resumed its
downtrend, gold has failed to benefit. []
The dollar is under pressure from expectations that the U.S.
Federal Reserve will implement further quantitative easing (QE)
to shore up the ailing economy. The euro, meanwhile, is
struggling with concerns over sovereign debt.
Both factors should, in due course, enhance gold's appeal as
a safe haven asset and hedge against inflation. For now,
however, profit taking and consolidation are the order of the
day for gold, following the recent record.
"The market certainly appears to have become increasingly
bored with the eurozone story, particularly with the potential
for QE2 in the US on the horizon, with gold failing to benefit
as much from its "safe haven" status," said Standard Bank in a
note.
"That said, gold and silver have nevertheless benefited from
buying into dips. So while $1,300 for gold looks out of reach
for now, we remain bullish and maintain this level as a
short-term target."
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a 24-hour technical outlook on gold:
http://graphics.thomsonreuters.com/WT/20102809084525.jpg
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
POISED TO BENEFIT
Investors will closely scrutinise U.S. data releases this
week, including manufacturing purchasing manager indexes for a
number of key economies and a U.S. core inflation reading due on
Friday.
Gold is poised to benefit if the data fails to allay fears
over the health of the global economy, especially given worries
over Ireland's debt and fresh speculation that Spain may be
downgraded by Moody's. []
"I expect gold will make new highs, not necessarily this
week but during the final quarter of this year, driven by the
threat of quantitative easing and more demand from the jewellery
industry," said Quantitative Commodity Research analyst Peter
Fertig.
The physical market in Asia was calm on Tuesday however,
despite the lower gold price, after seeing good physical demand
from top consumer India the previous day when gold hit a record
high. []
In industry news, the average forecast of delegates polled
at the end of London Bullion Market Association annual
conference said gold prices are likely to stand at $1,450 an
ounce in a year's time. []
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Take a Look on LBMA conference in Berlin:
[]
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Silver <XAG=> was at $21.19 an ounce versus $21.38, off a
30-year-peak of $21.61 hit on Monday.
The London Metal Exchange and LCH.Clearnet said on Tuesday
they aim to introduce a clearing service for over-the-counter
trading in silver next year, following the launch of their gold
clearing service in November. []
Platinum <XPT=> was at $1,613 versus $1,594.00 while
palladium <XPD=> was at $547.00 versus $455.50.
(Editing by James Jukwey)
