* Dollar rally pauses, supports gold []
* Gold rangebound $1,382-$1,410- technicals
[]
(Updates prices)
By Rujun Shen
SINGAPORE, Nov 11 (Reuters) - Gold prices edged up on
physical demand and a pause in a dollar rally as investors
closely watched for currency signals from the Group of 20
leadership summit that began on Thursday in Seoul.
Spot gold <XAU=> gained 0.3 percent to $1,407.34 an ounce
by 0613 GMT, off the all-time high of $1,424.10 hit on Tuesday.
A deeply divided G20 struggled to move beyond broad
promises of economic cooperation and into thorny issues of
exchange rates and trade balances as world leaders gathered in
Seoul for a two-day summit. []
"People are looking closely at the dollar. Trade may get a
bit choppy today because of uncertainties in the G20 meeting,"
said a Hong Kong-based dealer. []
"Everyone is looking to buy physical gold, instead of
holding currency. The second round of quantitative easing in
the U.S. just got more people interested in gold."
The dollar paused after four straight days of gains, during
which gold shook off the dollar influence and scored a new
all-time high, as investors fretted over resurgent euro zone
sovereign debt woes. []
"Another reason behind gold's strength is the active buying
in the physical market in Asia. Scrap supply has increased a
bit, but not enough to satisfy the demand for physical gold,"
said Dick Poon, manager at Heraeus in Hong Kong.
Spot silver <XAG=> rose 1.1 percent to $27.51 an ounce.
U.S. silver futures <SIZ0> gained 2.3 percent to $27.49 after
sharp falls in the previous session.
The gold-silver ratio, used to measure how many ounces of
silver are needed to purchase one ounce of gold, stood at
51.19, just above 50.92 hit on Tuesday, its lowest since
mid-2008 and well under a 28-year average at 64.79.
For a graphic on the ratio, click:
http://graphics.thomsonreuters.com/AS/0810/RS_20101111120831.jp
g "We continue to expect the silver market to be in
surplus
this year and in 2011, with investment demand proving to be
pivotal for prices," said Barclays in a research note.
Holdings in iShares Silver Trust <SLV>, the world's largest
silver-backed exchange-traded fund, jumped more than three
percent to 10,718.82 tonnes by Nov 10.
The holdings have risen six percent from a month earlier
and 15 percent from two months earlier. In comparison, holdings
in the SPDR Gold Trust <GLD> were little changed from one month
earlier, even two months earlier. []
Worries about inflation also lure investors to precious
metals.
In China, the world's largest gold producer, October's
headline consumer inflation hit a 25-month high of 4.4 percent
in October, official data showed, above expectations of 4.0
percent. []
To combat inflation and reign in excessive liquidity,
China's central bank is likely to tighten monetary policy
further, said head of Industrial and Commercial Bank of China,
the world's biggest lender, after some Chinese banks were asked
on Wednesday to raise reserve requirements. []
[]
Precious metals prices at 0613 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1407.34 4.64 +0.33 28.44
Spot Silver 27.51 0.31 +1.14 63.46
Spot Platinum 1758.49 22.50 +1.30 19.87
Spot Palladium 711.72 12.72 +1.82 75.52
TOCOM Gold 3731.00 45.00 +1.22 14.48
85039
TOCOM Platinum 4706.00 30.00 +0.64 7.42
22683
TOCOM Silver 73.30 0.50 +0.69 41.78
3329
TOCOM Palladium 1890.00 66.00 +3.62 62.23
1389
Euro/Dollar 1.3785
Dollar/Yen 82.21
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Ed Lane)
