* Gold expected to move higher, but at slower pace
* Silver hits 30-year high of $30.93
* Gold may fall towards $1,370 - technicals []
* Coming up: U.S. ISM Manufacturing PMI, Dec; 1500 GMT
(Adds details, comments; updates prices)
By Rujun Shen
SINGAPORE, Jan 3 (Reuters) - Spot gold prices edged lower
on Monday, after posting a 30 percent gain in 2010, as a
rebound in the dollar weighed on the market, and silver pulled
back from a 30-year high hit earlier.
The dollar gained nearly half a percent on Monday,
building on gains from 2010, as investors gear up for gains in
early 2011 on expectations the U.S. economic recovery was
gaining momentum.
"This morning some profit-taking interest depressed the
market, but gold still has very good support from fresh buying
and short-covering," said Peter Fung, head of dealing
department at Wing Fung Precious Metals in Hong Kong, adding
that any dip below $1,400 will trigger buying interest.
Fung expected gold to trade in the range of $1,410 to
$1,425 during the first trading day of the year, when volumes
were still thin as key market players including China, Japan
and Australia were out of action on holiday.
Spot gold edged down 0.2 percent to $1,416.22 an
ounce by 0258 GMT, after finishing a tenth consecutive year of
winning run.
U.S. gold futures shed 0.3 percent to $1,416.9.
"Everything is still looking good for gold," said a second
Hong Kong-based dealer. "It's just a matter of time when gold
strikes a new high. Gold will continue to go higher, but
slower, as people will become more cautious at price levels at
$1,500 or $1,600."
The sovereign debt crisis in Europe will continue to help
drive investors to park their value in gold and other precious
metals, he added.
Investors are eyeing the non-farm payroll data for
December out of the United States, which is expected to show
an improvement from the previous month, consistent with other
signs that the economy is strengthening. []
On the same day, Federal Reserve Chairman Ben Bernanke is
scheduled to testify on the economic outlook before Congress.
TECHNICALS LESS BULLISH
Technicals project a less positive picture.
Spot gold is expected to fall towards $1,370 per
ounce, as its wave pattern indicates a completion of a wave
(5), and a deep correction may follow, according to Reuters
market analyst Wang Tao. []
In the first quarter, gold may be bound in a range between
$1,144 and $1,214 an ounce, based on its wave pattern and a
Fibonacci retracement analysis, Wang also said. []
Spot silver touched a 30-year high of $30.93
earlier in the day, and retraced to $30.75. It posted an 83
percent gain in 2010, following top performer palladium's 97
percent rise.
Holdings in the world's largest silver-backed
exchange-traded fund, iShares Silver Trust , rose for the
first time since Dec 17 to 10,921.57 tonnes by Dec 31 from
10,903.34 tonnes.
Spot platinum rose to $1,775, its highest since Nov
10, before easing to $1,769.
Precious metals prices at 0258 GMT
Metal Last Change Pct chg YTD pct chg
Spot Gold 1416.22 -3.23 -0.23 -0.23
Spot Silver 30.75 -0.11 -0.36 -0.36
Spot Platinum 1769.00 1.50 +0.08 0.08
Spot Palladium 793.25 -6.25 -0.78 -0.78
(Editing by Manash Goswami)
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