* Fiscal worries of euro zone prompt profit taking
* Sentiment dent after Fed minutes show rate hike possible
* Anglo Platinum may lift 2010 output to meet demand
* Coming up: GFMS gold survey on Wednesday
(Recasts, add comments, updates prices; changes dateline from
LONDON)
By Frank Tang
NEW YORK, April 13 (Reuters) - Gold prices fell on Tuesday,
losing nearly 1 percent, as investors took profits following a
price rally driven by a rising euro amid optimism about a
rescue package for debt-laden Greece.
The metal had climbed to a four-month high at just below
$1,170 an ounce on Monday as relief over the 30 billion euro
($40.81 billion) bailout plan for Greece sparked a rally in the
common unit against the dollar. But gold finished flat as
weaker physical demand limited gains.
"There is profit taking as the market is getting ahead of
itself from news of the Greece bailout last week," said George
Gero, vice president of RBC Capital Markets Global Futures.
Gold had ended higher for a seventh consecutive session
prior to Monday, Reuters data showed. The metal was also 3
percent higher last week.
Spot gold <XAU=> was at $1,152.80 an ounce at 2:56 p.m. EDT
(1856 GMT), against $1,155.00 late in New York on Monday.
U.S. June gold futures <GCM0> settled down $8.80 at
$1,153.40 an ounce on the COMEX division of the New York
Mercantile Exchange.
Market sentiment took a toll after minutes from a mid-March
Federal Reserve meeting showed the U.S central bank discussed
raising for a second time the discount rate, the interest rate
charged on emergency loans to banks. []
Saxo Bank Senior Manager Ole Hansen said that the gold
market was being driven chiefly by currency moves, with
uncertainty linked to a possible yuan revaluation by China also
a background factor. []
"There are a few worries creeping in about a correction, as
we have had a good move, but it is healthy that we finally
managed to break recent highs," Hansen said.
Monday's intraday high at $1,168.70 was the firmest since
Dec. 8.
The euro traded flat as investors worried about the fiscal
health of Greece, with results from a Greek Treasury bill
auction showing the market still required a high premium to
hold Greek assets.
Concern over the fiscal health of peripheral euro zone
economies like Greece has weighed heavily on the euro this
year, knocking it more than 5 percent lower versus the dollar.
By the same token, gold priced in euros hit record highs
recently as some European investors switched into hard assets
<XAUEUR=R>.
Strength in the dollar curbs gold's appeal as an
alternative asset and makes commodities priced in the U.S. unit
more expensive for holders of other currencies.
TECHNICALLY POISED FOR GAINS
From a technical perspective, gold is poised for further
gains, analysts said, but may need to put in several sessions
of consolidation before it tracks higher once again.
"Gold remains in overbought territory, with immediate
support around $1,150 and then $1,142.50," VTB Capital analyst
Andrey Kryuchenkov said in a note. "We need to see a confirmed
pullback below these levels to suggest a definite and
much-needed correction."
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For a technical analysis of the spot gold price, click
[]
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Among other precious metals, platinum <XPT=> prices
retreated from the previous session's 20-month high to trade at
$1,712.50 an ounce, against $1,720 late in New York on Monday.
The world's biggest producer of the white metal, Anglo
Platinum <AMSJ.J>, said it expects demand to improve this year
and may raise production by around 200,000 ounces to meet that.
[]
Palladium <XPD=> was at $524.50 an ounce, against $516.50,
while silver <XAG=> was at $18.21 an ounce against $18.19.
Close Change Pct 2009 YTD
Chg Close % Chg
US gold <GCM0> 1153.40 -8.8 -0.8 1096.20 5.2
US silver <SIK0> 18.249 -0.165 -0.9 16.845 8.3
US platinum <PLN0> 1717.30 -22.10 -1.3 1471.00 16.7
US palladium <PAM0> 521.80 -2.35 -0.4 408.85 27.6
Prices at 3:19 p.m. EDT (1919 GMT)
Gold <XAU=> 1152.50 -2.50 -0.2 1096.35 5.1
Silver <XAG=> 18.21 0.02 0.1 16.84 8.1
Platinum <XPT=> 1712.50 -7.50 -0.4 1465.50 16.9
Palladium <XPD=> 524.50 8.000 1.5 405.50 29.3
Gold Fix <XAUFIX=> 1148.25 -1.00 -0.1 1104 4.0
Silver Fix <XAGFIX=> 18.16 -33.00 -1.8 16.99 6.9
Platinum Fix <XPTFIX=> 1714.00 6.00 0.4 1466 16.9
Palladium Fix<XPDFIX=> 518.00 8.00 1.6 402 28.9
(Additional reporting by Jan Harvey and Rebekah Curtis in
London; Editing by Walter Bagley)
