* Receding euro zone debt concern weighs on gold
* Bernanke: U.S. economy should grow 3-4 pct this year
* Gold could rally to record highs above $1,600-GFMS
* Coming Up: U.S. consumer prices due Friday
(Recasts, adds comments, updates prices to market close, new
byline, dateline, previously LONDON)
By Frank Tang
NEW YORK, Jan 13 (Reuters) - Gold fell on Thursday,
snapping three sessions of gains as safe-haven buying subsided
after successful European bond sales and a more positive
economic outlook from U.S. Federal Reserve Chairman Ben
Bernanke.
Silver <XAG=> fell 3.1 percent to $28.74 an ounce, tracking
gold's decline.
Platinum and palladium hit multi-year highs on expectations
of faster global growth, stable investment demand and optimism
stemming from better demand from the auto industry. Prices
later came off their peaks on profit-taking.
Bullion dropped as the euro posted its biggest rise against
the dollar in more than six months after Spain and Italy staged
successful bond sales, easing concerns about an escalation of
euro zone debt strife.[] []
"The fact that the euro rallied should have supported gold,
but it didn't because the reason for the rally was that the
Spanish and Italian bond auction went well, which reduced the
risk demand for gold," said James Steel, chief commodity
analyst at HSBC.
Gold was further pressured after Bernanke said the U.S.
economy should grow around 3 percent to 4 percent this year, a
healthier clip than in 2010, but not enough to bring down
unemployment as much as policymakers would like.
[]
Spot gold <XAU=> fell 0.8 percent to $1,376.19 an ounce at
2:53 p.m. EST (1953 GMT). U.S. gold futures for February
delivery <GCG1> settled up $1.20 at $1,387 an ounce.
Earlier in the session, gold rose toward $1,400 an ounce
after data showed an unexpected jump in weekly U.S. jobless
claims, their largest rise in six months. This lifted gold to a
session peak of $1,392.80 an ounce, its highest since Jan. 4.
[]
But the short-covering rally ran out of steam and gold fell
after three straight days of rallies, analysts said.
COMEX gold futures volume was more than one-third above its
30-day average, and silver was about 10 percent higher,
preliminary Reuters data showed.
The euro zone's leaders are trying to come up with a new
package of anti-crisis measures, which also dent gold buying.
European Central Bank President Jean-Claude Trichet renewed a
call for the bloc's governments to boost the size and scope of
their 440 billion euro ($578.2 billion) rescue fund.
GFMS SEES GOLD ABOVE $1,600/OZ
Gold could rally to record highs above $1,600 an ounce late
this year or early 2012 as safe-haven concerns fueled
investment demand, respected metals consultancy GFMS Ltd said
on Thursday. []
The official sector swung into net purchases last year for
the first time since 1988, as increased buying in emerging
markets more than offset gold sales by European central banks,
GFMS said.
GFMS Chairman Philip Klapwijk said the sovereign debt
crisis in Europe could spread to the United States, as the
world's largest economy has used loose monetary policy and
massive budget deficits to stimulate economic recovery.
"I think that at some point, this could start to call into
question of its Triple-A bond rating," which would
significantly buoy bullion's safe-haven buying, Klapwijk said.
Gold has risen nearly 1 percent this week due to jitters
over euro zone debt, but remains nearly 3.5 percent below the
record $1,430.95 struck in December.
Platinum and palladium have found renewed favor among
investors as holdings in the larger ETFs remain near record
levels, while optimism grows over the outlook for the auto
market this year, a key source of demand for both metals.
Palladium, consumed primarily by gasoline-powered vehicles
used largely in North America and emerging economies, virtually
doubled in price last year as investors prepared for car
markets in countries like China, Brazil and India to grow.
Spot palladium <XPD=> eased 0.1 percent to $807.47 an
ounce, having hit a 10-year high of $821.47 earlier in the
day.
Platinum <XPT=> rose 0.5 percent to $1,807.24, having
earlier reached its highest since July 2008 at $1,826.74.
Prices at 3:08 p.m. EST (2008 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US gold <GCG1> 1387.00 1.20 0.1% -2.4%
US silver <SIH1> 29.263 -0.282 0.0% -5.4%
US platinum <PLJ1> 1818.60 20.70 1.2% 2.3%
US palladium <PAH1> 813.45 6.70 0.8% 1.3%
Gold <XAU=> 1376.44 -10.78 -0.8% -3.0%
Silver <XAG=> 28.77 -0.88 -3.0% -6.8%
Platinum <XPT=> 1807.49 8.99 0.5% 2.3%
Palladium <XPD=> 806.50 -1.34 -0.2% 0.9%
Gold Fix <XAUFIX=> 1381.50 0.75 0.1% -2.0%
Silver Fix <XAGFIX=> 29.22 -38.00 -1.3% -4.6%
Platinum Fix <XPTFIX=> 1824.00 26.00 1.4% 5.4%
Palladium Fix <XPDFIX=> 819.00 4.00 0.5% 3.5%
(Additional reporting by Amanda Cooper in London and Lewa
Pardomuan in Singapore; Editing by David Gregorio)
