(Recasts, changes dateline, pvs SINGAPORE)
By Daniel Magnowski
LONDON, April 24 (Reuters) - Gold stayed near a three-week
low on Thursday after the dollar bounced against the euro,
prompting investors to liquidate some holdings in the precious
metal.
Spot bullion <XAU=> was quoted at $901.50/902.20 per ounce
at 1031 GMT, down from $905.50/906.70 an ounce late in New York
on Wednesday, when it hit an intraday trough of $897.10, its
lowest since April 3.
While the long-term outlook for gold remained bullish given
record high oil prices and expectations of further interest rate
cuts in the United States, attempts to revisit a lifetime high
of $1,030.80 hit on March 17 have been met by profit taking.
"This morning gold is taking its cue from the Ifo via the
dollar move, and this afternoon it will be looking at U.S.
durable goods and new home sales," Barclays Capital analyst Suki
Cooper said.
The euro slid further from this week's record high against
the dollar after Germany's Ifo corporate sentiment index eased,
denting confidence in the euro zone.
The euro fell to $1.5747 <EUR=>, having reached an all-time
high above $1.60 earlier this week. The dollar rose to 103.65
yen <JPY=> but stayed below a two-month high of 104.66 hit last
week.
Data that boosts the dollar is generally bad news for gold.
"U.S. durable goods might disappoint consensus expectations,
which would be supportive for gold," Dresdner Kleinwort said in
a report.
Durable goods data for March was due at 1230 GMT, with home
sales to follow at 1400.
The Federal Reserve's next policy meeting is due on April
29-30 and investors believe it will cut its benchmark overnight
rate by a further quarter percentage point, to 2 percent. Lower
rates boost gold's appeal as an alternative investment.
Driven largely by investor buying, gold has gained 8 percent
since the start of the year.
In the physical market, jewellers took advantage of the drop
in prices to stock up, with main consumer India abuzz with
activity during the wedding season and ahead of a religious
festival. []
The technical outlook for gold indicated it may fall
further, analysts said.
"By breaking $$898/97 the correction will carry on to
$891/889 and $882 or even $877," chartists at Societe Generale
said in a report.
Spot platinum <XPT=> fell to $1,989/1,999 per ounce from
$1,991.50/2,001.50 late in New York.
The market came under pressure after Mitsui Mining and
Smelting Co Ltd <5706.T> said it has developed a new catalyst
for diesel engine cars that replaces platinum with much-cheaper
silver. []
Silver <XAG=> edged down to $17.05/17.10 an ounce from
$17.14/17.20 an ounce. Spot palladium <XPD=> was barely changed
at $442/448 per ounce from $441.50/447.50 in New York.
(Additional reporting by Lewa Pardomuan; editing by Chris
Johnson)
