* CME raises margins on precious metals
* Gold to fall towards $1,341 -technicals []
* Coming up: U.S. industrial output; 1415 GMT
(Updates prices)
By Rujun Shen
SINGAPORE, Nov 16 (Reuters) - Gold was steady on Tuesday as
investors continued to watch the progress of the euro zone debt
crisis, with a margin hike at CME weighing on sentiment.
Euro zone finance ministers will try to find a way to end
Ireland's debt crisis on Tuesday, with Dublin resisting
pressure to seek a state bailout by signalling that only its
banks may need help. []
As worries about Ireland dragged on, the dollar touched a
six-week high against the euro, before dipping against the euro
and the yen after New York Fed President William Dudley said
the need for Fed to exit from current policies could be "years
away". [] []
"The strong dollar is pressuring gold," said Ronald Leung,
a physical dealer at Lee Cheong Gold Dealers. "Gold is looking
a little bearish in the short term, due to a stronger dollar
and year-end profit-taking."
Talks on more monetary tightening in China and other Asian
countries also worried traders. South Korea's central bank
raised interest rates for the second time since the global
crisis and signalled further tightening as it shifted its focus
away from heavy fund inflows to rising inflation.
[]
Spot gold <XAU=> was little changed at $1,360.40 an ounce
by 0646 GMT, after falling to $1,354.99 in the previous
session, its lowest in nearly two weeks. U.S. gold futures
<GCZ0> fell 0.6 percent to $1,360.2 an ounce.
A bearish target at $1,341 per ounce for spot gold <XAU=>
is unchanged, based on a triangle pattern that formed between
$1,382 and $1,424, said Wang Tao, a Reuters market analyst.
[]
For a graphic of the 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20101611090950.jpg
Physical buying and scrap selling was scarce, dealers said.
"In two to three days, buying will pick up. People are
waiting to see prices stabilised before they jump in," said a
Hong Kong-based dealer, adding that the ongoing Indian wedding
season and upcoming Lunar New Year will provide support to
physical demand.
CME MARGIN HIKE
The Chicago Mercantile Exchange said it would raise margin
requirements for gold by 5.9 percent and 11.5 percent for
silver, among other precious metals, effective at the close of
business on Nov. 16. []
For a table on the changes in margins, click:
[]
"Some speculative positions may be liquidated after the
margin hike," said a Singapore-based trader.
Spot silver <XAG=> trimmed earlier gains to $25.64, up 0.9
percent.
Platinum <XPT=> fell to $1,660, its lowest in more than
three weeks, before recovering to $1,662.49.
Spot palladium <XPD=> rose by 0.3 percent to $671.25.
Precious metals prices at 0646 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1360.40 0.31 +0.02 24.16
Spot Silver 25.64 0.22 +0.87 52.35
Spot Platinum 1662.49 -6.25 -0.37 13.33
Spot Palladium 671.25 2.03 +0.30 65.54
TOCOM Gold 3640.00 -5.00 -0.14 11.69
51035
TOCOM Platinum 4487.00 -9.00 -0.20 2.42
14936
TOCOM Silver 68.40 -0.60 -0.87 32.30
2197
TOCOM Palladium 1790.00 -3.00 -0.17 53.65
579
Euro/Dollar 1.3596
Dollar/Yen 82.98
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Manash Goswami)
