* Gold trims early gains on euro but sentiment positive
* Oil little changed, Nikkei up on U.S. stimulus plans
* Investors await FOMC meeting on interest rates next week
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Dec 9 (Reuters) - Gold trimmed early gains on
Tuesday as speculators booked profits after bullion posted its
biggest daily gain in two weeks the previous day, but firm oil
and optimism about U.S. economic plans underpinned sentiment.
U.S. President-elect Barack Obama pledged to create more
than 2.5 million new jobs by 2011, while Chinese and European
leaders plotted their next steps as investors looked to
governments to lead major economies out of recession.
[]
Gold <XAU=> hit an intraday high of $776.45 an ounce before
slipping to $773.30 as the euro turned lower against the U.S.
dollar. That was still $2 higher than New York's notional
close.
Gold has bounced more than 10 percent since tumbling to a
13-month low of $680.80 in late October, when a sell-off in
equities forced investors to dump bullion to cover margin
calls. Bullion was still 25 percent below March's record of
$1,030.80.
"Gold seems to have found temporary solace after witnessing
consistent selling last week," said analyst Pradeep Unni at
Richcomm Global Services.
"If oil continues to offer support, then gold might extend
its gains beyond $780. However a close above $780 is a
necessity for accelarated gains," said Unni, referring to
Monday's session high.
Oil <CLc1> barely changed, at around $43 a barrel on
Tuesday after a 7 percent jump the previous day, with the
market watching for the U.S. Energy Department's short-term
outlook that could point to more oil demand weakness next year.
[] Dealers also awaited the outcome of the U.S. Federal
Reserve's Federal Open Market Committee meeting on interest
rates on Dec. 15, which could determine the direction of the
dollar and precious metals.
"The expectation is the dollar will soften after the rate
cut and that will be supportive for gold. But I think gold will
trade in a range for the time being," said a dealer in Hong
Kong.
"Physical buying is limited at the moment after prices went
up to as high as $780 this week. I think jewellers have already
bought enough stocks for the Christmas period," he said.
Premiums for gold bars were unchanged in Hong Kong at $1.50
to $2.00 to the spot London prices. <GOLD/ASIA1>
The FOMC has already slashed its benchmark lending rate to
1 percent from 5.25 percent since September 2007 in an attempt
to stabilise financial markets and stem economic weakness.
Dealers expect at least a half percentage point cut in the
Fed's benchmark lending rate at next week's policy meeting, to
0.5 percent.
The Nikkei <> rose 0.8 percent on Tuesday on optimism
for U.S. economic plans and a government bailout of the "Big
Three" automakers. []. The euro slipped to $1.2875 <EUR=>.
Platinum <XPT=> was trading at $803.50 an ounce, down
$17.50 from New York's notional close on Monday, when it gained
more than 5 percent on growing optimism about the auto industry
rescue plan.
The White House reviewed a Democratic plan on Monday to
bail out stricken automakers with up to $15 billion in loans, a
bid that would also clear the way for longer-term help if
industry meets certain conditions. []
New York gold futures <GCZ9> added $5.8 an ounce to $775.1
in electronic trade.
Precious metals prices at 0648 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 773.30 2.00 +0.26 -7.13
Spot Silver 10.03 0.08 +0.80 -32.09
Spot Platinum 803.50 -17.50 -2.13 -47.14
Spot Palladium 172.00 -1.00 -0.58 -53.26
TOCOM Gold 2299.00 -38.00 -1.63 -24.87
37887
TOCOM Platinum 2408.00 -118.00 -4.67 -54.90
15527
TOCOM Silver 295.80 2.80 +0.96 -45.32
385
TOCOM Palladium 524.00 -4.00 -0.76 -61.21
269
Euro/Dollar 1.2873
Dollar/Yen 92.59
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
