(Updates prices)
By Lewa Pardomuan
SINGAPORE, April 1 (Reuters) - Gold bounced on Tuesday as
weakness in the U.S. dollar spurred light buying from bargain
hunters and speculators, but the metal could be stuck in a
range ahead of this week's U.S. economic data.
Gold <XAU=> rose to $918.50/919.30 an ounce from
$916.20/917.00 late in New York on Monday, when it dropped more
than 2 percent, tracking weaker crude oil <CLc1>.
"Although the long-term trend in gold remains in place, we
believe that we are in a highly volatile period, hinting that
the short-term trend is still very unclear for precious
metals," said Pradeep Unni, an analyst at Vision Commodities in
Dubai.
"This week, the market would focus on a barrage of economic
data that could provide more evidence of a recession in the
U.S. ecomony."
Gold struck a record of $1,030.80 an ounce on March 17 but
has since struggled, with a sell-off in commodities pushing the
price down to a one-month low around $904 a few days later.
Record high oil prices and expectations of further interest
rate cuts in the United States had propelled bullion to its
record high.
"It may take some weeks and even months before we can see
$1,000 again. Basically, we are waiting for the funds to
reallocate their assets again. There's no buying signal right
now," said a dealer in Singapore.
"My own take is $905 will be the support. If it is
breached, there will be a lot of stop-loss orders. I think this
consolidation phase will last for weeks," said the dealer, who
saw resistance at $935 an ounce.
After posting its biggest quarterly loss in four years, the
dollar steadied against the euro on Tuesday ahead of a series
of economic data that may offer more clues on the health of the
U.S. economy, plus testimony from the Federal Reserve chief
later this week. []
On Tuesday, the Institute for Supply Management will report
on U.S. manufacturing conditions, with a median forecast of a
reading of 47.5, down from 48.3 in February.
Jobs data on Friday is expected to show U.S. employers cut
payrolls in March for the third straight month.
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange added $1.2 an ounce to
$927.7.
Spot platinum <XPT=> fell to $1,957/1,967 an ounce from
$2,005/2,025 but dealers said the metal was still supported by
fears of a power crisis disrupting mining in main producer
South Africa.
"Supply constraints in South Africa and robust demand from
the automotive sector were pushing the market for platinum
group metals into "deep structural deficit", brokerage Goldman
Sachs JB Were said in a reseach note to clients.
The most active Tokyo platinum futures <0#JPL:> ended the
morning session 222 yen per gram lower at 6,152 yen,
reflecting
weakness in the cash market.
Silver <XAG=> edged down to $17.21/17.26 an ounce from
$17.27/17.32 an ounce.
Spot palladium <XPD=> fell to $431/436 an ounce from
$438/443 an ounce.
Precious metals prices at 0217 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 917.90 2.60 +0.28 10.23
Spot Silver 17.21 0.00 +0.00 16.52
Spot Platinum 1957.00 -48.00 -2.39 28.75
Spot Palladium 431.00 -7.00 -1.60 17.12
TOCOM Gold 2976.00 -50.00 -1.65 -2.75
30832
TOCOM Platinum 6152.00 -222.00 -3.48 15.23
11764
TOCOM Silver 559.80 -20.10 -3.47 3.48
773
TOCOM Palladium 1423.00 -44.00 -3.00 5.33
1907
Euro/Dollar 1.5772
Dollar/Yen 99.95
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by James Regan in Sydney)
(Editing by Alan Raybould)
