US gold drops below $1,000/oz on dollar rally

NEW YORK, Sept 21 (Reuters) - U.S. gold futures dropped below $1,000 an
ounce on Monday as a broadly higher dollar and sharp drop of crude oil
prompted across-the board selling.

For the latest detailed report, click on [GOL/].

GOLD

* December gold GCZ9 down $11.20, or 1.1 percent, at $999.10 an ounce
at 9:40 a.m. EDT (1340 GMT) on the COMEX division of the New York
Mercantile Exchange.

* Ranging from $996.30 to $1,008.30.

* Gold pressured as dollar rallied, as currency traders scaled back
massive short positions ahead of a Federal decision on interest rates this
week. [USD/]

* Profit-taking prior to G20 meeting later this week as well as
cautionary stop-loss orders weigh on gold futures, but continued buying in
exchange-traded products underpins gold and silver as long as dollar
remains in current trading range - George Gero, vice president of RBC
Capital Markets Global Futures.

* News on official-sector gold sales took a toll on the market. Late
Friday, the International Monetary Funds member countries formally endorsed
a plan for strictly limited sales of 403.3 tonnes of gold from its
stockpile.

* The IMF said that any on-market sales of one-eighth of its total gold
holdings would be done in a way that did not disrupt gold markets.
[ID:nN18272627]

* China is considering buying gold being offered for sale by the IMF,
Market News International said on Monday, citing two unnamed government
sources, but the report could not immediately be confirmed. [ID:nSP482136]

* Worries about imminent shorter-term traders also dragged prices
lower, as trade data showed that speculators held a record net long
position in U.S. gold futures.

* The noncommercial net long position in gold futures on the COMEX
division of the New York Mercantile Exchange stood at an all-time high of
235,647 lots for the week ended Sept 15 - Commodity Futures Trading
Commission data. [ID:nN18268348]

* U.S. crude futures tumbled below $70 per barrel on demand worries and
a stronger dollar. [O/R]

* Gold-to-oil ratio at 14.36, up from the previous session's 14.01.

* Spot gold XAU= at $997.85 an ounce, down from $1,006.15 an ounce,
the previous session's late New York quote.

* London morning gold fix XAUFIX= was at $999.25 an ounce.

SILVER

* December silver SIZ9 down 38 cents, or 2.1 percent, at $16.685 an
ounce, down with gold.

* Range from $16.985 to $16.525 an ounce -- a one-week low.

* Spot silver XAG= was at $16.62, versus its previous finish of 16.96
an ounce..

* London silver fix XAGFIX= at $16.68 an ounce.

PLATINUM

* October platinum PLV9 down $23.20, or 1.7 percent, at $1,315 an
ounce on the back of broad-based precious metals weakness.

* Spot platinum XPT= was at $1,307 an ounce, compared with its
previous finish of $1,327.

PALLADIUM

* December palladium PAZ9 down $6.50 at $298 an ounce.

* Spot palladium XPD= was at $293.50 an ounce, against its previous
close of $299.50.
Prices at 9:40 a.m. EDT (1340 GMT)

Last Change Pct 2008 YTD

Chg Close % Chg
US gold GCZ9 999.00 -11.30 -1.1 884.30 13.0
US silver SIZ9 16.710 -0.355 -2.1 11.295 47.9
US platinum PLV9 1315.30 -22.90 -1.7 941.50 39.7
US palladium PAZ9 297.75 -6.75 -2.2 188.70 57.8
Gold XAU= 997.50 -8.65 -0.9 878.20 13.6
Silver XAG= 16.66 -0.30 -1.8 11.30 47.4
Platinum XPT= 1306.50 -20.50 -1.5 924.50 41.3
Palladium XPD= 293.00 -6.50 -2.2 184.50 58.8
Gold Fix XAUFIX= 999.25 -12.75 -1.3 836.50 19.5
Silver Fix XAGFIX= 16.68 -43.00 -2.5 14.76 13.0
Platinum Fix XPTFIX= 1310.00 3.00 0.2 1529.00 -14.3
Palladium Fix XPDFIX= 294.00 4.00 1.3 365.00 -19.5
(Reporting by Frank Tang; Editing by John Picinich)