* Gold rises on euro, but off record
* For the technicals on gold, click []
* Coming Up: U.S. Existing home sales May; 1400 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, June 22 (Reuters) - Gold gained on Tuesday as
the euro jumped after China's central bank set the yuan's daily
mid-point at its strongest since a 2005 revaluation, while a
drop in bullion prices from a record also triggered bargain
hunting.
Gold could still revisit $1,250 an ounce due to worries
about the global economy, but an increase in risk appetite
following China's move could cap gains. Silver and platinum
group metals were higher, partly driven by firm base metals.
[]
Spot gold <XAU=> rose $6.65 to $1,238.30 an ounce by 0253
GMT. Gold struck a record high around $1,264 on Monday before a
sudden drop in the euro prompted heavy selling from investors,
sending the price down to a low around $1,230.
"There's some physical buying from the retail sector but I
think there's not much. The market is consolidating after
reaching record highs," said a dealer in Hong Kong.
"This is also a good time to take profits but I don't think
gold will fall below $1,200. We may trade in a range of $1,230
to $1,248 ahead of the FOMC meeting. If goes back to around
$1,250, we may see another record high next week," he added.
China's central bank set the yuan's daily mid-point
<CNY=SAEC> at 6.7980 against the dollar on Tuesday, in the
second day of trading since China pledged at the weekend to
make the yuan more flexible. []
A Reuters poll of analysts showed Chinese authorities will
only allow up to a 2.4 percent rise for the yuan against the
dollar by the end of 2010, keeping its word that it will keep
the currency basically stable. []
The Federal Reserve's two-day policy meeting begins on
Tuesday and some dealers are increasingly convinced the U.S.
central bank will leave its policy rate target in the zero to
0.25 percent range until the middle of 2011.
For a graphic of the gold technical outlook, click:
http://graphics.thomsonreuters.com/gfx/WT_20102206100825.jpg
U.S. gold futures for August delivery <GCQ0> fell $1.5 an
ounce to $1,239.2, after hitting a record around $1,266.
Gold has rallied to records as investors turned to the
metal on worries the euro debt crisis would spread, the U.S.
economy may be slowing and after China's move to make the yuan
exchange rate flexible put pressure on the dollar.
"In the short-term the gold price may be in for some
consolidation," said Fortis Bank Nederland in a report.
"But rather like a long-distance runner who has been
sitting in an armchair for years, the gold price needs to pause
for breath before the next small rally higher."
The euro and the Australian dollar hit their highs on the
day on Tuesday after China's central bank set the yuan's
mid-point higher, while the Nikkei slipped after a bounce to a
one-month high the previous day. [] [] []
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P> said its holdings were unchanged at a record
high at 1,307.963 tonnes. []
Oil fell 0.8 percent toward $77 on Tuesday on speculation
that a gradual appreciation of the yuan would have a limited
impact on China's petroleum imports in the short term. []
Precious metals prices at 0253 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1238.30 6.65 +0.54 13.01
Spot Silver 18.76 0.06 +0.32 11.47
Spot Platinum 1591.00 4.00 +0.25 8.45
Spot Palladium 491.25 1.25 +0.26 21.15
TOCOM Gold 3634.00 -55.00 -1.49 11.51
47476
TOCOM Platinum 4696.00 -9.00 -0.19 7.19
9898
TOCOM Silver 55.50 -1.50 -2.63 7.35
637
TOCOM Palladium 1456.00 3.00 +0.21 24.98
240
Euro/Dollar 1.2292
Dollar/Yen 91.00
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by)
