* Gold seen rangebound between $1,370-$1,400 through
year-end
* Gold to fall towards $1,350.27 - technicals
[]
* Coming up: ECB President Trichet speaks; 1830 GMT
(Adds details, comment; updates prices)
By Rujun Shen
SINGAPORE, Dec 13(Reuters) - Spot gold held steady on
Monday as healthy physical demand helped buoy prices, while
China's move to further tighten its monetary policy and upbeat
U.S. economic data weighed on sentiment.
China raised banks' reserve requirement ratio on Friday,
as the country's inflation soared to a 28-month high in
November and put pressure on the government to step up efforts
to curb inflation. [] []
[]
"There's the possibility that China would tighten its
policy further," said Ong Yi Ling, an analyst at Philip
Futures. "It could affect demand for commodities, and gold
could be caught in a sell-off."
The dollar edged higher against a basket of currencies,
supported by higher Treasury yields after improving U.S. data
late last week.
A rise in U.S. consumer confidence to its highest in six
months and a much bigger-than-expected contraction in the
country's trade deficit pointed to a firmer economic recovery
on Friday. []
Spot gold gained by 0.2 percent to $1,385.29 an
ounce by 0304 GMT, after falling by 2.2 percent last week.
U.S. gold futures edged up 0.1 percent to $1,386.6
an ounce.
Spot gold is biased to fall even though it is
rangebound between $1,371 to $1,395 per ounce, said Wang Tao,
a Reuters market analyst.
For a 24-hour gold technical outlook:
http://graphics.thomsonreuters.com/WT/20101312081916.jpg
Robust physical demand in the region helped support
prices, dealers said.
"The physical market is very good. Bullion traders and
some jewellers are buying, as well as some individual
customers who prefer to sell currency and buy gold," said
Peter Fung, head of dealing department at Wing Fung Precious
Metals in Hong Kong.
India and China have both shown strong appetite, due to
seasonal rise in demand, he added.
Investors are eyeing a Federal Reserve meeting on Tuesday
to see whether the proposed $600 billion stimulus plan would
be carried out, or if further stimulus would be considered to
jump-start the economy. []
"If the Fed hints further QE (quantitative easing), it
would provide some bullish support to gold," said Ong of
Philip Futures.
"On the longer term, some investors could be buying on
dips, which also provides support to prices."
Platinum group metals rose more than one percent,
following strength in the industrial metals complex.
Spot platinum rose one percent to $1,682.99 an
ounce, and palladium gained more than one percent to
$736.97.
Three-month copper on the London Metal Exchange
gained more than one percent, while LME zinc rose more than
two percent.
Precious metals prices at 0304 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1385.29 2.14 +0.15 26.43
Spot Silver 28.83 0.28 +0.98 71.30
Spot Platinum 1682.99 17.89 +1.07 14.72
Spot Palladium 736.97 8.69 +1.19 81.74
TOCOM Gold 3751.00 -2.00 -0.05 15.10 33036
TOCOM Platinum 4604.00 29.00 +0.63 5.09 7177
TOCOM Silver 78.20 -0.10 -0.13 51.26 930
TOCOM Palladium 2018.00 -7.00 -0.35 73.22 514
Euro/Dollar 1.3189
Dollar/Yen 84.00
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting By Rujun Shen; Editing by Manash Goswami)
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