PRECIOUS-Gold ends below $900/oz ahead of US stimulus plan

                                
 * Weakness seen ahead of U.S. stimulus, bank rescue plans
                                
 * Failure to break above $930 resistance triggers selling
                                
 * Johnson Matthey sees '09 platinum demand declining 5 pct
 (Recasts, updates prices, market activity to close; adds NEW
YORK to dateline)
                                
 By Frank Tang and Jan Harvey
                                
 NEW YORK/LONDON, Feb 9 (Reuters) - Gold fell nearly 2
percent on Monday on profit taking after the precious metal
failed to break above $930 an ounce last week, and investors
monitored U.S. Congressional debate of an economic stimulus.
                                
 "There was not any follow-through (buying) during the last
couple of days. One of the things that we are waiting for is
the bailout plan," said Mihir Dange, a COMEX gold floor
trader.
                                
 Disappointment that the yellow metal failed to surpass $930
an ounce last week led to further selling.
                                
 "We are looking forward to that breakout area around $930
to $938. If we can break out of there, then it will be a truly
 up market," Dange said.
                                
 Spot gold <XAU=> was at $894.05 an ounce at 3:00 p.m. EST
(2000 GMT), down 1.9 percent from the last trade $911.70 in New
York late on Friday.
                                
 U.S. gold futures for April delivery <GCJ9> settled down
$21.50, or 2.4 percent, to $892.80 an ounce on the COMEX
division of the New York Mercantile Exchange.
                                
 Signs of a stock market recovery, and hopes the Obama
stimulus plan will boost U.S. growth, were taking the heat out
of safe-haven buying for exchange-traded funds.
                                
 "Stocks had a good performance last week and Barclays had
some nice figures today," said Commerzbank senior trader
Michael Kempinski. "Probably the safe-haven buying argument is
gone for the time being."
                                
 The Senate was due to vote later on Monday on the stimulus
plan and bank rescue package, clearing the way for passage on
Tuesday. [ID:nL9359000]
                                
 SPDR Gold Trust <GLD>, the largest bullion-backed exchange
traded fund, said its holdings were static on Friday after
rising to a record on two successive days last week.
                                
 Gold continued to break its correlation with the
dollar-euro exchange rate, one of its main external drivers.
                                
 OUTPUT ROSE
                                
 The world's third-largest gold miner, AngloGold Ashanti
<ANGJ.J>, said its output rose to 1.268 million ounces in the
three months to end-December and its cash costs at $422 an
ounce showed a 13 percent improvement on the previous quarter.
[ID:nL9122013]
                                
 Silver was at $12.83 an ounce, down 1.8 percent from its
previous finish of $13.06. Silver has benefited from technical
buying as the gold-silver price ratio declines, analysts said.
                                
 Platinum <XPT=> eased to $990.50 an ounce, down 0.9 percent
from $999.50. Precious metals consultancy Johnson Matthey
<JMAT.L> said it expects platinum demand to fall 5 percent this
year, and held its price forecast for the metal at $700-1,400
an ounce. [ID:nL9343361]
                                
 Spot palladium <XPD=> was at $205.50, down 2.1 percent
against its Friday last trade of $210. The metal jumped 11
percent last week on the back of fund interest, as it is seen
as good value compared to platinum.
                                
 ETF Securities said its palladium-backed exchange-traded
commodity <PHPD.L> saw inflows of 12,628 ounces or 8 percent
last week. [ID:nL9630473]
                                
 (Reporting by Frank Tang and Jan Harvey; Editing by David
Gregorio)