PRECIOUS-Gold up 1 pct as U.S. inflation data weighs on dollar

                                
 * Silver, palladium rose more than two percent	
                                
 * Spot gold to fall to $1,317-technicals[ID:nSGE6AH016]    	
                                
 * Coming up: U.S. initial jobless claims, weekly; 1330 GMT	
                                
 	
                                
 By Rujun Shen	
                                
 SINGAPORE, Nov 18 (Reuters) - Gold rose nearly one percent 
on Thursday, buoyed by a pause in a dollar rally after soft 
U.S. inflation, while short-covering buying also helped.	
                                
 U.S. core consumer inflation touched a record low in 
October 	
and new home building sagged, lending support to the Federal 	
Reserve's move to boost the sluggish economy through additional 	
monetary easing. [ID:nN17190977]	
                                
 The dollar lost about 0.2 percent against a basket of 	
currencies, after rallying to seven-week highs. 
                                
 "People expect the dollar to further deteriorate, which 
gives a strong incentive to buy into gold," said Ellison Chu, 
a senior manager at Standard Bank in Hong Kong, adding that 	
short-covering was seen around the current price level.	
                                
 "They are building up another round of long positions."	
                                
 Spot gold gained nearly one percent to $1,348.55 an 	
ounce by 0316 GMT, after falling for four consecutive sessions.	
                                
 U.S. gold futures rose by 0.8 percent to $1,347.8.	
                                
 Spot gold is expected  to fall to $1,317 per ounce 
as 	
a bear trend has established  and a wave "c' or wave "3" will 	
unfold, said Wang Tao, a Reuters market analyst. [ID:nSGE6AH016]	
                                
 For a 24-hour gold technical outlook, see:	
                                
 http://graphics.thomsonreuters.com/WT/20101811090857.jpg	
                                
 Robust physical demand in the region has also lent support 
to prices, dealers said.	
                                
     	
                                
 SILVER, PALLADIUM RALLY	
                                
 Spot silver rose as much as 2.3 percent to $26.21 an 	
ounce, before easing to $26.17.	
                                
 "The price drop from $29 to $25 last week was a bit 	
exaggerated," said Chu of Standard Bank, "Many expect silver to 	
be around $26 and $27. There's quite a lot of silver buying."	
                                
 Silver is likely to rise above $30 and average $28 in 2011, 	
lifted by strong investment buying and recovering fabrication 	
demand, precious metals research and consulting firm GFMS said. 	
[ID:nWALHME6SC]	
                                
 Holdings in the iShares Silver Trust , the world's 	
largest physically-backed exchange-traded fund, rose to a 
record 	
high of 10,773.56 tonnes.	
                                
 The fund's holdings gained five percent in the past month, 
in comparison with just 0.3 percent rise in holdings of the 
SPDR 	
Gold Trust over the same period of time. 
                                
 Spot palladium rose 2.4 percent to an intraday high 
of $676, before softening to $672.97.	
                                
 Speculation on diminishing palladium stockpiles has also 
lent support to prices.	
                                
 A lack of sales from Russian state palladium stocks could 	
leave the market "substantially in deficit" in the years to 
come, refiner Johnson Matthey warned as it launched its 
Platinum 2010 Interim Report.[ID:nLDE6AB0N4]	
                                
 "We still see Russian ingots supplies, and do not think the 	
Russian problem is very serious right now. But it is a good 	
excuse for speculators," said a Tokyo-based trader.	
                                
 	
 Precious metals prices at 0316 GMT	
 Metal             Last    Change  Pct chg  YTD pct chg Turnover	
 Spot Gold        1348.55   12.85   +0.96     23.08             
 	
 Spot Silver        26.17    0.56   +2.19     55.50             
 	
 Spot Platinum    1643.74   10.25   +0.63     12.05             
 	
 Spot Palladium    672.97   12.72   +1.93     65.96             
 	
 TOCOM Gold       3621.00   17.00   +0.47     11.11       37049 	
 TOCOM Platinum   4453.00   24.00   +0.54      1.64        9095 	
 TOCOM Silver       70.20    1.70   +2.48     35.78        1897 	
 TOCOM Palladium  1807.00   93.00   +5.43     55.11         758	
                                
	
 Euro/Dollar       1.3579                                       
 	
 Dollar/Yen         83.27                                       
 	
 	
 TOCOM prices in yen per gram. Spot prices in $ per ounce.	
                                
 	
                                
 (Editing by Ed Lane	
                                
 
 
 
                                
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