* Silver falls more than 3 pct; platinum group metals
tumble
* Gold to retreat to $1,385 - technicals []
* Coming up: U.S. weekly ECRI index; 1430 GMT
By Rujun Shen
SINGAPORE, Nov 12 (Reuters) - Gold fell over one percent on
Friday in a broad retreat triggered by a stronger dollar, talk
about euro zone sovereign debt at the Seoul G20 summit and
speculation China may again hike interest rates to tame
inflation.
Spot gold lost as much as 1.7 percent to $1,385.77 an
ounce, and recovered slightly to $1,389.17 by 0401 GMT.
Spot silver <XAG=> fell more than three percent to $26.62
an ounce, and was trading at $26.86.
"Everyone is watching the G20, and gold is chasing the
dollar," said Ronald Leung, a physical dealer at Lee Cheong
Gold Dealers in Hong Kong, "We can see some consolidation from
here, in a range of $40 dollars below $1,420."
Metals, grains and oil sold off broadly on Friday on
worries about a possible new round of Chinese monetary
tightening, a weaker euro and the temptation to cash in on
gains.
Chinese consumer price inflation rose a faster than
expected 4.4 percent in October, a 25-month high.
"The rumor that China will raise interest rates has been
circulating this week," said Sun Lei, a metals analyst at
Galaxy Futures in Beijing.
Also weighing on gold was strength in the dollar spurred by
concern that euro zone nation Ireland may need to tap a special
fund in the face of mounting borrowing costs.
The dollar rose to a five-week high against a basket of
currencies <.DXY>, as the euro hit six-week lows on the dollar
on Friday. []
"If the inverse correlation between the dollar and gold
strengthens, we can see the dollar weigh on gold again," said
Ong Yi Ling, an analyst at Phillip Futures.
For a graphic on the correlation between gold and dollar,
click:
http://graphics.thomsonreuters.com/AS/0810/RS_20101211115542.jp
g Some investors were selling off to lock in profit ahead
of the holiday season, after gold prices have risen nearly 18
percent in the past three months.
But the fall is unlikely to be sharp.
"I think gold will find a base soon, as there is some
physical buying at this level," said a Singapore-based trader,
expecting the support level at $1,390.
The G20 will agree to setting vague "indicative guidelines"
for measuring global imbalances and hammer out the details next
year, G20 sources said on Friday, effectively calling a timeout
to let tempers cool after heated debate over currencies.
[]
Platinum group metals also fell sharply, with platinum
<XPT=> falling 2.5 percent to a one-week low of $1,707.75 and
palladium down nearly 3 percent to $689.5.
Industrial metals also fell broadly, with Shanghai copper
and zinc futures touching daily downside limits and London
copper slip over two percent. []
Precious metals prices at 0401 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1389.17 -20.22 -1.43 26.78
Spot Silver 26.86 -0.89 -3.21 59.60
Spot Platinum 1713.99 -38.01 -2.17 16.84
Spot Palladium 692.00 -17.72 -2.50 70.65
TOCOM Gold 3686.00 -46.00 -1.23 13.10
65367
TOCOM Platinum 4584.00 -116.00 -2.47 4.63
17081
TOCOM Silver 71.20 -2.00 -2.73 37.72
2799
TOCOM Palladium 1835.00 -55.00 -2.91 57.51
1165
Euro/Dollar 1.3622
Dollar/Yen 82.33
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Ed Lane)
