* Gold bounces from lows; jewellers buy
* Gold to fall to $1,312 an ounce []
* Coming Up: U.S. ECRI econ activity index weekly; 1645
GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Oct 22 (Reuters) - Gold bounced on Friday on
bargain hunting by jewellers after losing 1.5 percent in the
previous session, but was heading for its biggest weekly fall
since July as the dollar firmed ahead of a G20 finance
ministers meeting.
Gold was about 4 percent below a lifetime high around
$1,387 an ounce hit last week, losing its appeal as an
alternative investment as the dollar regained strength despite
anticipation of further monetary easing by the U.S. central
bank.
Gold <XAU=> added $2.45 an ounce to $1,326.05 by 0225 GMT
after hitting a two-week low on Thursday as a drop in U.S.
initial jobless claims and a stalled euro rally spurred
selling.
"Next week, I wouldn't look at gold hitting a new high. For
next week, I am looking at a neutral to a slight downside bias
for gold," said Ong Yi Ling, investment analyst at Phillip
Futures in Singapore.
"The G20 influences the movements of the dollar and
currently we are still seeing an inverse relationship between
gold versus the dollar. I am looking at short-term support for
gold at the $1,320 level."
U.S. gold futures for December delivery <GCZ0> were steady
at $1,325.9 an ounce, having fallen as low as $1,318.20 on
Thursday. []
For a graphic of the 24-hour gold technical outlook, see:
http://graphics.thomsonreuters.com/WT/20102210074652.jpg
Japan's finance minister Yoshihiko Noda said the group of
20 finance and central bank chiefs did not have a specific
currency agenda for their two-day meeting, adding that a U.S.
proposal to set current account targets was "unrealistic".
[] The U.S. dollar held steady in early Asian
dealings on Friday after a volatile session in New York but was
seen supported with investors likely to trim short positions on
caution ahead of the G20 meeting, which starts on Friday.
[]
Purchases by jewellers stirred up the physical market,
keeping premiums steady in Singapore at 50 to 70 cents to spot
London prices. <GOLD/ASIA1>
"We're seeing moderate buying from jewellers and bullion
dealers from the Far East. There's also physical gold bar
indent from Indonesia," said a dealer in Singapore.
"The Indonesians are showing interest to buy, but their
buying power is much lower these days."
Dealers expected purchases from jewellers in top consumer
India to pick up because of a recent drop in gold prices ahead
of important religious festivals in November. []
India is in the middle of the festival season, with
Dhanteras slated early next month, when jewellers register the
highest sales in the year. The festive season peaks with the
Diwali festival of lights in November.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said its holdings slipped to 1,298.266
tonnes by Oct. 21 from 1,299.177 tonnes on Oct 20. The holdings
hit a record at 1,320.436 tonnes on June 29. []
Precious metals prices at 0225 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1326.05 2.45 +0.19 21.02
Spot Silver 23.26 0.08 +0.35 38.21
Spot Platinum 1669.49 3.54 +0.21 13.80
Spot Palladium 586.49 4.96 +0.85 44.63
TOCOM Gold 3471.00 -36.00 -1.03 6.51
41320
TOCOM Platinum 4387.00 -16.00 -0.36 0.14
5956
TOCOM Silver 61.00 -1.00 -1.61 17.99
984
TOCOM Palladium 1537.00 9.00 +0.59 31.93
156
Euro/Dollar 1.3900
Dollar/Yen 81.18
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by)
