(Repeats to additional subscribers)
* Dollar weakness spurs buying
* Investors await FOMC meeting on interest rates
* Australia sees sharper-than-expected drop in gold output
(Updates prices)
By Lewa Pardomuan
SINGAPORE, June 23 (Reuters) - Gold bounced on Monday as a
weak U.S. dollar spurred buying, but investors are likely to
remain cautious ahead of the await the U.S. Federal Reserve's
interest rates decision this week.
Gold <XAU=> rose to $905.25/906.25 an ounce from
$901.35/902.75 late in New York on Friday.
"From what happened in the past few days, I think it's a bit
of cautious trading. I think everyone is focusing on the FOMC
meeting this week," said Adrian Koh, analyst at Philip Futures
in Singapore.
"I am looking at $905-$910 for a bit of resistance. If we
do move above those levels tonight, we could see higher gold
prices," he said.
Gold jumped to its highest level in more than a week at
$907.90 an ounce on Thursday on firm oil prices but had since
corrected, and remains well below a record high of $1,030.80
hit in mid-March.
The euro inched up to $1.5624 <EUR=> on expectations the
European Central Bank will raise interest rates by a
quarter-percentage point to 4.25 percent in July.
The Federal Open Market Committee meets on Tuesday and
Wednesday and is widely expected to leave interest rates at 2
percent, after slashing them by 3.25 percentage points since
September.
Oil <CLc1> edged down after Saudi Arabia said it was ready
to increase oil output capacity and Nigerian militants
announced a unilateral ceasefire, with Middle East tensions
putting a floor under the price.
"There's a bit of short covering but it's not great. I
guess sentiment now is slightly neutral to bullish. $910 is the
nearest resistance but it may be difficult to break for the
time being," said a bullion dealer in Hong Kong.
Gold futures for August delivery <GCQ8> on the COMEX
division of the New York Mercantile Exchange added $4.0 an
ounce to $907.7.
In output news, Australia was set to record a
sharper-than-expected 7 percent drop in gold production in the
year to June as old mines closed and on below par output at
some newer lodes across the outback. []
Spot platinum <XPT=> fell to $2,053.50/2,073.50 an ounce
from $2,048.50/2,068.50 late in New York. Spot palladium <XPD=>
rose to $471.00/479.00 an ounce from $469.50/477.50 an ounce.
Silver <XAG=> edged up to $17.41/17.48 an ounce from
$17.36/17.43 late in New York.
The most active Tokyo platinum contract for April 2009
delivery <0#JPL:> on the Tokyo Commodity Exchange ended the
morning session 29 yen per gram lower at 6,989 yen.
Precious metals prices at 0242 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 905.20 4.35 +0.48 8.71
Spot Silver 17.41 0.09 +0.52 17.87
Spot Platinum 2053.50 5.00 +0.24 35.10
Spot Palladium 470.00 0.50 +0.11 27.72
TOCOM Gold 3149.00 -4.00 -0.13 2.91
14084
TOCOM Platinum 6989.00 -29.00 -0.41 30.90
11563
TOCOM Silver 605.60 -5.80 -0.95 11.94
336
TOCOM Palladium 1661.00 4.00 +0.24 22.95
542
Euro/Dollar 1.5614
Dollar/Yen 107.30
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
