* Eyes on China, possible rate hike partly priced in
* Gold to fall towards $1,310-technicals[]
* Coming up: Fed Chairman Bernanke speaks; 1015 GMT
By Rujun Shen
SINGAPORE, Nov 19 (Reuters) - Gold prices steadied on
Friday, holding onto gains from the previous session, as a
cure is seen imminent for Ireland's debt crisis, which helped
boost the euro.
Ireland insisted on Thursday its low rate of corporation
tax
was "non-negotiable" as it discusses an aid package worth tens
of billions of euros from European partners and the IMF for its
shattered banks.[]
Spot gold was little changed at $1,352.94 an ounce
by
0341 GMT, on course for a 0.8-percent weekly decline.
U.S. gold futures was trading at $1,352.6.
Investors are closely watching China's monetary policy
maneuver, after talks of an imminent rate hike have been
circulating and caused sell-off in commodities earlier in the
week.
Another rate hike might cause downward pressure on
commodities, but the impact isn't likely to be profound as the
anticipation has been building and partly priced in, analysts
and traders said.
"I think a rate hike, if materialized over the weekend, is
likely to exert a bit of volatility for commodities, including
precious metals," said Yingxi Yu, an analyst at Barclays
Capital.
"But fundamentally it doesn't change our views that China
will continue to grow at a robust pace. It doesn't change our
view that fundamental demand for commodities from China is not
going to be severely affected by a rate hike."
China's government has pledged to tame inflation, China's
consumer inflation reading hit a 25-month peak in October. For
a
factbox on China's inflation, click: []
Spot gold is expected to drop towards $1,310 as the
downtrend is still short of a wave "e" development, said Wang
Tao, a Reuters market analyst. []
For a graphic showing the 24-hour gold technical outlook,
see: http://graphics.thomsonreuters.com/WT/20101911102335.jpg
In comments prepared for delivery to a conference the
European Central Bank later in the day, Federal Reserve
Chairman
Ben Bernanke gave a full-throated defense against criticism the
U.S. central bank's controversial bond-buying program is
debasing the dollar, saying a vigorous U.S. recovery is
central to global economic health.[]
Physical buying has been strong in the region after prices
dropped nearly seven percent from its all-time high of
$1,424.10
hit on Nov 9 to a hair below $1,330 on Nov 16.
"We saw buying interest below $1,350 in the region, as
people are betting on price rise to $1,500 next year," said a
Hong Kong-based dealer.
Spot silver gained 0.3 percent to $26.99, headed
for a weekly rise of 3.8 percent.
Spot platinum fell 0.9 percent to $1,647.74, down
1.9
percent on the week.
Prominent commodities investor and hedge fund manager
Dwight
Anderson said Thursday platinum output has possibly peaked as
the precious metal gets harder to mine, and prices are likely
to rise to record highs.[]
But platinum has lagged behind other precious metals,
posting a 12-percent year-to-date rise, compared to a
70-percent jump in palladium.
Precious metals prices at 0341 GMT
Metal Last Change Pct chg YTD pctchg Turnover
Spot Gold 1352.94 0.29 +0.02 23.48
Spot Silver 26.99 0.07 +0.26 60.37
Spot Platinum 1647.74 -14.26 -0.86 12.32
Spot Palladium 690.47 -3.25 -0.47 70.28
TOCOM Gold 3640.00 9.00 +0.25 11.69 43846
TOCOM Platinum 4466.00 -5.00 -0.11 1.94 10547
TOCOM Silver 72.80 2.20 +3.12 40.81 2604
TOCOM Palladium 1850.00 38.00 +2.10 58.80 799
Euro/Dollar 1.3630
Dollar/Yen 83.44
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting by Rujun Shen; Editing by Ed Lane)
Reuters Terminal users can see related news and prices by
double clicking on the codes in brackets:
- All precious metals headlines
- Precious metals market reports
- Daily fixing headlines
- Technical analysis
- Indian gold reports
- European gold prices <0#PREC>
- London interbank gold forward rates <0#GOFO=>
- London silver forwards
- Gold lease rates <0#LGLR=>
- London Bullion Market Association
- New York Comex gold <0#GC:> and silver <0#SI:>
- New York platinum <0#PL:> and palladium <0#PA:>
- Asian gold prices <0#PREC>
- Australian precious metals prices <0#AUPREC=>
- Shanghai Gold Exchange prices
- Hong Kong gold exchange prices
- Hong Kong bullion prices
- Indian bullion prices <0#PREC-IN>
- Japanese producer prices
For Related News and other topics, double click on one of these
codes:
SPEED GUIDES
