* Fears over Greece send dollar to 6-month high vs the euro
* Fed verdict seen as crucial for sentiment
* Chinese monetary policies worry; Toyota recall weighs
* Reuters poll shows fresh gains expected in 2010
(Recasts, add precious metals poll, updates prices)
By Michael Taylor and Jan Harvey
LONDON, Jan 27 (Reuters) - Gold eased on Wednesday as the
dollar hit a six-month high versus the euro amid persistent
concerns over Greece's fiscal problems, and ahead of a U.S.
interest rate decision.
Gold <XAU=> was bid at $1,092.60 an ounce by 1530 GMT,
against $1,097.25 an ounce in New York late on Tuesday. U.S.
gold futures for February delivery <GCG0> on the COMEX division
of the New York Mercantile Exchange fell $5.00 to $1,093.30.
Gold is mainly being pressured by dollar strength. The U.S.
currency hit its highest since late July against the euro on
Wednesday while European shares fell and U.S. stocks opened
lower, weighed down by concerns over Greece. [] [] []
"The problem for commodity traders at the moment is the
broad-based correction in pro-growth assets and the dollar going
up," said Jesper Dannesboe, senior commodity strategist at
Societe Generale.
"Those looking to buy, and there are quite a few out there,
are just trying to time it," he said, adding; "One driver that
triggered people to take profit is the Chinese tightening."
Investors fear lending curbs may dampen asset buying by
China, whose heavy consumption of commodities has been a key
factor driving prices higher. Gold also has less appeal when
interest rates rise, as it is non-interest bearing.
China's credit-tightening steps and President Barack Obama's
plans to limit banks' risk taking have dampened confidence over
an economic recovery in recent weeks, helping investors shift
back to the dollar from riskier assets, including commodities.
However, a Reuters poll of 60 analysts, traders and fund
managers were positive about gold this year as a whole, with
prices seen averaging $1,150.50 an ounce. []
FOMC CRUCIAL
The U.S. Federal Reserve ends a two-day monetary policy
meeting on Wednesday. Policymakers are seen keeping interest
rates near zero and indicating whether they will stick to plans
to wind down an emergency asset purchase programme by March.
[]
"The market has been building a base for the next move and
we expect things to get more exciting," said Andrey Kryuchenkov,
an analyst at VTB Capital. "Volatility will pick up, while later
today all focus will be on the Fed statement."
Elsewhere Peter Munk, the chairman of the world's biggest
gold miner, Barrick Gold Corp <ABX.TO>, told Reuters Television
that while gold prices may be volatile, the rise was not over.
[]
Click on (http://link.reuters.com/des85h) to watch.
Among other precious metals, palladium fell more than 1
percent, correcting further after last week's 19-month high of
$471.75 per ounce when investment demand fuelled by the recent
launch of U.S. exchange-traded funds boosted prices.
Palladium <XPD=> was at $419.50 an ounce, versus $425 late
in New York on Tuesday. Spot platinum <XPT=> was bid at $1,519
an ounce, against $1,532.50.
Also weighing on sentiment was news that Toyota Motor Corp
<7203.T>, the world's biggest automaker, is to suspend U.S.
sales of eight models due to a safety recall. []
Platinum and palladium are exposed to the auto sector,
mainly used in catalytic converters. "If you are looking for
excuses to sell short term, this is another one," said Citigroup
analyst David Thurtell.
However, the Reuters poll showed that palladium is expected
to outperform other precious metals this year. []
Elsewhere silver <XAG=> prices were at $16.61 an ounce
versus $16.72 an ounce late on Tuesday.
(Editing by Sue Thomas)
