PRECIOUS-Gold down 1 pct after rally to near four-month high

                                
 * Gold edges down after hitting near 4-month high
                                
 * Nikkei falls 0.5 pct on earnings gloom
                                
 * Oil steady around $41 a barrel on strike threats
 (Updates prices)
                                
 By Lewa Pardomuan
                                
 SINGAPORE, Feb 2 (Reuters) - Gold fell more than 1 percent
on Monday after speculators booked profits from a rally to a
near four-month high last week, but worries about the state of
the global economy could still spur buying from investors.
                                
 Gold rose 5.6 percent in January, its third consecutive
monthly rise, partly driven by flight-to-quality buying after
funds poured more money into bullion as an investment instead
of other asset classes such as stocks and treasuries.
                                
 Gold <XAU=> was trading at $914.40 an ounce, down $12.60
from New York's notional close. Bullion rallied more than 2
percent to hit a high of $930.40 -- its strongest since Oct.
10, when it hit $931, its highest in more than two months.
                                
 "I am bullish but I am waiting for prices to move above
$930 to turn more bullish. That seems like the key level to
look at," said Adrian Koh, an analyst at Phillip Futures in
Singapore, referring to the recent highs.
                                
 The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said it held arecord 843.59 tonnes of
gold on Jan. 29, up 10.71 tonnes fromJan. 27, as gold's recent
rally attracted buying from funds and investors. [GOL/SPDR]
                                
 Speculative gold players in the non-commercial category
boosted their net long positions to 141,114 lots on gold
futures traded on COMEX at Jan 27, up from 123,937 net long
lots at Jan. 20, Commodity Futures Trading Commission data
showed.
                                
 But the physical sector remained slow, with jewellers
staying on the sidelines because of high prices. India's gold
futures hit an all-time high on Friday, tracking strong global
markets and support from a weak rupee. [GOL/IN]
                                
 India is the world's largest gold consumer and the
jewellery sector accounts for almost 70 percent of global
bullion demand.
                                
 "From the physicals' perspective, prices are getting more
expensive, so buyers will be more inclined to hold back first.
Jewellery buying is lower on higher prices from places like
India and perhaps also due to the effects of the global
economic crisis," said Koh of Phillip Futures.
                                
 "But when we take a look at the investment demand for gold,
it still looks firm," he said.
                                
 In other markets, the Nikkei stock average <.N225> fell 0.5
percent as Hitachi Ltd <6501.T> plunged after it warned of a
record $7.8 billion loss on weak sales, a firmer yen and
restructuring costs amid growing global economic gloom. [.T]
                                
 The euro <EUR=> fell to $1.2718 on trading platform EBS,
its weakest since early December, after data showed a worsening
labout market and receding inflation. [USD/]
                                
 Oil <CLc1> was steady around $41 a barrel, aided by threats
of major strikes by refinery workes in the United States. [O/R]
                                
 "We are seeing profit-taking in Asia, which is also because
gold couldn't hold above $930. It may fall further before
trying to get to the higher levels again," said a dealer in
Hong Kong.
                                
 "But I guess the market is waiting for the U.S. Senate to
pass the rescue package. If they don't pass it, then it may
bring good news to gold," he said.
                                
 Facing opposition from Republican lawmakers to parts of his
economic recovery plan, President Barack Obama called
Congressional leaders to a meeting on Monday to drive home his
message of urgency. [ID:nN01420749]
                                
 The stream of bleak news reached fever pitch after U.S.
companies shed more than 200,000 jobs in January and some
investors worried a plan to shore up banks may take longer to
come together.
                                
 Platinum <XPT=> was trading at $979.00 an ounce, down $6.50
from New York's notional close.
                                
 PRICES  
 Metal         Last      Change  Pct chg  Day ago pct  MA 30
RSI  Spot gold     $914.40  -$12.60  -1.36%    +1.94%   $860.10
  76
 Spot silver    $12.44   -$0.19  -1.50%    +3.84%     $11.29 
83
 Spot plat     $979.00   -$6.50  -0.66%    -0.66%    $958.30 
69
 COMEX gold    $915.60  -$12.10  -1.30%    +1.09%    $862.92 
74
 TOCOM gold      2,659       27  +1.03%    +4.32%      2,493 
66
 TOCOM plat      2,834       40  +1.43%    +3.32%      2,685 
58
 Currencies                                               
Euro/dlr       $1.273  -$0.041  -3.12%    -3.42%
 Dlr/yen         89.82    -0.56  -0.62%    +1.01%
 (Editing by Clarence Fernandez)