PRECIOUS-Gold dips after rally; heads for 4th week of gains

* Gold due for a correction-technicals
* Coming Up: U.S. GDP Q4; 1330 GMT

(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Jan 27 (Reuters) - Gold fell from a 7-week
high on Friday as speculators booked profits ahead of U.S. GDP
data, but prices were heading for a fourth week of gains with
the Federal Reserve's pledge to keep interest rates near zero
for some time supporting sentiment.
Although gold investors were relieved by the Fed's move to
keep rates historically low, they will now turn their attention
again to the outcome of the Greek debt crisis, with U.S. funds
still cautious about lending to banks in the troubled euro zone.
A Reuters poll showed gold's record-breaking rally of the
last decade is set to extend into this year and the next as
monetary policy stays loose and central banks build reserves.

Gold hit a high around $1,723 an ounce before
slipping to $1,718.70 by 0710 GMT, down $1.34. Gold rallied to
$1,729.76 on Thursday, its strongest since early December, but
was still well below a record around $1,920 hit last September.
"I think it's a good time to buy gold scraps again, but
clients are all cautious. They are doing enough to roll their
money but keeping it all for the possibility of buying back," a
physical dealer in Singapore said.
"The market has been like a yo-yo."
Cash gold prices were on track for a more than 3 percent
rise this week. U.S. gold fell $7.8 an ounce to
$1,718.9 an ounce.
"Some of the key data that market participants could be
focusing on will be the first reading of the Q4 U.S. GDP. I
think a positive reading in general will be good for risk assets
and gold as well," said Ong Yi Ling, an analyst at Phillip
Futures in Singapore.
"I am actually looking for the next resistance level at
about the $1,800 level," said Ong, adding that gold was prone to
profit taking after recent gains.
The United States will release gross domestic product data
for the fourth quarter later on Friday, and a 3 percent bounce
as forecast could bolster risk-positive
sentiment.

The euro was on track to be one of the week's best
performers with a gain of 1.8 percent as the Fed's latest move
on interest rates encouraged carry trades funded in dollars.

Investors' attention will again shift to Greece as debt
talks with private creditors resume on Friday. Any resolution to
avoid a messy default could see the euro break higher.
Greece and its private creditors made progress on Thursday
in talks on restructuring its debt, both sides said, and they
will continue negotiating on Friday with the aim of sealing an
agreement within a few days.
Gold, typically a safe-haven asset, has been tracking the
fortunes of the euro and stocks, with speculators selling the
metal for cash to cover losses in other markets, especially
during this period of uncertainty in Europe.
"There's some selling from Thailand, and also Indonesia.
But I've told customers that it's better not to sell now because
the market may still go up again," said another physical dealer
in Singapore.
"Maybe it's better to wait until Monday when the Chinese
market reopens and see whether they will buy some more gold or
they will take profits."
The broad asset rally which the U.S. Federal Reserve
inspired by pledging to keep rates low decelerated on Friday as
investors awaited the outcome of Greek debt talks and U.S. gross
domestic product data.

Precious metals prices 0710 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1718.70 -1.34 -0.08 9.91
Spot Silver 33.45 0.03 +0.09 20.80
Spot Platinum 1602.05 -1.55 -0.10 15.01
Spot Palladium 685.45 -2.30 -0.33 5.05
COMEX GOLD FEB2 1718.80 -7.90 -0.46 9.70 18112
COMEX SILVER MAR2 33.49 -0.26 -0.76 19.95 2030
Euro/Dollar 1.3105
Dollar/Yen 77.11

COMEX gold and silver contracts show the most active months

(Editing by Himani Sarkar)