PRECIOUS-Gold firms as dlr weakens after Fed comments

                                
 TOKYO, Dec 8 (Reuters) - Gold firmed slightly on Tuesday,
recovering from a two-week low marked the previous day, as the
dollar weakened after the Federal Reserve chief cautioned that
the U.S. economic recovery remains fragile.
                                
 FUNDAMENTALS
                                
 * Spot gold <XAU=> was at $1,159.40 per ounce at 0016 GMT, up
0.2 percent from New York's notional close of $1,156.90.
                                
 * Gold fell as low as $1,135.80 on Monday, its lowest since
Nov. 20.
                                
 * The precious metal came under pressure after Friday's
optimistic nonfarm payrolls data prompted speculation the Fed may
lift interest rates from their current historic lows sooner
rather than later, which could help the dollar and cut support
for gold.
                                
 * Bullion rose to an all-time high at $1,226.10 an ounce on
Thursday last week amid expectations of persistent weakness in
the U.S. currency, hopes for asset diversification by central
banks and lower risk tolerance among investors.
                                
 * U.S. gold futures for February delivery <GCG0> fell 0.4
percent to $1,159.20 per ounce.
                                
 * The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,129.966 tonnes as
of Dec. 7, unchanged from the previous business day. [GOL/SPDR]
                                
 MARKET NEWS
                                
 * The dollar edged lower on Tuesday while the euro recovered
from one-month lows after senior Federal Reserve officials curbed
speculation of a quick rise in U.S. rates after a promising jobs
report last week. [USD/]
                                
 * Japan's Nikkei shares average <.N225> was down 0.7 percent
on Tuesday. [.T]
                                
 * The S&P 500 and Nasdaq ended slightly lower on Monday and
the Dow was flat, reversing earlier gains, after comments by
Federal Reserve Chairman Ben Bernanke sparked jitters about the
economic recovery. [.N]
                                
 DATA EVENTS
                                
 * The following events are expected on Tuesday: <ECON>
                                
 - Japan Oct current account surplus (2350 GMT)
                                
 - Australia Q3 current account deficit (0030 GMT)
                                
 - U.K. industrial output for Oct (0930 GMT)
                                
 - German total industrial output for Oct (1100 GMT)
                                
 - Bank of Canada rate decision (1400 GMT)
                                
 RELATED NEWS
 >Oil, most commods markets fall; cocoa at 25-yr peaks[COM/WRAP]
 >Bernanke says econ improving, faces headwinds  [ID:nN07169826]
 >Dlr relationship with risk assets on the rocks [ID:nN07173465]
 >Gold correction healthy amid commods bubble    [ID:nN07130460]
 >Kaufman sees "speculative fervor"              [ID:nN07172043]
                                
 PRICES
 Precious metals prices at 0005 GMT
 Metal         Last      Change  Pct chg  Day ago pct  MA 30  RSI
 Spot gold    $1157.45    $0.55  +0.05%   +29.04%    $860.10   43
 Spot silver    $18.15   -$0.01  -0.06%   +51.50%     $11.29   41
 Spot plat    $1441.00    $2.50  +0.17%    +0.03%   $1425.18   47
 TOCOM gold      3,337      -15  -0.45%    -2.68%      3,272   51
 TOCOM plat      4,152       -3  -0.07%    -2.05%      4,055   55
 Currencies                                                     
 Euro/dlr       $1.483   $0.001  +0.04%    -0.19%
 Dlr/yen         89.36    -0.13  -0.15%    -1.00%
 (Reporting by Risa Maeda)