PRECIOUS-Gold down 1 pct on U.S. retail data, India duty hike

Tue Aug 13, 2013 2:47pm EDT

* Data bolsters view Fed stimulus should fade
    * Dollar hits one-week high against euro, yen
    * India hikes gold import duty for 3rd time in 2013
    * Coming up: U.S. producer price index, funds' SEC filings

 (Adds market activities and Fed's Lockhart comments)
    By Frank Tang and Zhe Sun
    NEW YORK/LONDON, Aug 13 (Reuters) - Gold fell 1 percent on
Tuesday, snapping a four-day winning streak, weighed down by
better U.S. consumer spending data and after top market India
hiked its import duty on gold to a record 10 percent.
    Bullion came under pressure after a report by the Commerce
Department showed U.S. consumer spending rose in July at its
fastest pace in seven months, an encouraging sign that could
strengthen the case for the Federal Reserve winding down its
economic stimulus program. 
    The metal extended loses as the dollar rose to a one-week
high against both the euro and the yen on the U.S. retail data.
 
    "The story right now is the stronger dollar, and the huge
increase of import duties by the Reserve Bank of India (RBI) is
likely to weigh on physical demand," said Howard Wen, metal
analyst at HSBC.
    India raised import taxes on gold and silver on Tuesday as
policymakers scrambled to narrow a gaping current account
deficit. It marked the third such increase in eight months.
 
    Spot gold fell 1 percent to $1,322.40 by 2:14 p.m.
EDT (1814 GMT).                                               
    U.S. Comex gold futures for December delivery settled
down $13.70 at $1,320.50 an ounce, with trading volume about 20
percent below its 30-day average, preliminary Reuters data
showed.
    The metal largely ignored comments by Atlanta Fed President
Dennis Lockhart, who said recent data does not present a clear
picture of the economy, even as he did not rule out some kind of
decrease next month in the $85 billion monthly pace of bond buys
currently under way. 
    Traders are closely focused on U.S. economic data for signs
of economic momentum as they anticipate that the U.S. central
bank will start reducing its stimulus in September if the
economy is gaining traction.
    Gold has fallen about 20 percent this year as any Fed
stimulus tapering would likely lead to a higher interest-rate
environment that diminished gold's attractiveness.
    Wednesday's U.S. regulatory filings from hedge funds and
institutional investors are expected to show how their holdings
had changed during the second quarter, in which gold had posted
a record two-day $225 sell-off in mid April. 
    Silver sharply erased its early gains, largely
tracked gold's move. It last traded 0.3 percent higher at $21.42
an ounce, having earlier risen to a two-month high of $21.76 an
ounce.
    Among platinum group metals, platinum edged up 0.2
percent to $1,495.24 an ounce, while palladium gained 25
cents to $736.25 an ounce.
 2:14 PM EDT     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold DEC   1320.50 -13.70  -1.0  1317.80 1341.00  139,200
 US Silver SEP  21.343  0.004   0.0   21.120  21.750   58,743
 US Plat OCT   1499.70   1.00   0.1  1493.10 1514.70    8,181
 US Pall SEP    738.90   1.30   0.2   735.20  742.75    3,488
                                                              
 Gold          1322.40 -13.39  -1.0  1319.43 1341.11         
 Silver         21.420  0.070   0.3   21.170  21.760
 Platinum      1495.24   2.24   0.2  1494.00 1511.75
 Palladium      736.25   0.25   0.0   738.00  740.00
                                                              
 TOTAL MARKET              VOLUME          30-D ATM VOLATILITY
                CURRENT   30D AVG  250D AVG   CURRENT     CHG
 US Gold        149,245   193,703   188,374     22.78   -4.19
 US Silver       70,614    45,810    54,176     29.42    1.40
 US Platinum      8,389     9,249    12,496     20.53    0.00
 US Palladium     4,141     3,637     5,310                  
                                                              
 
 (Additional reporting by Clara Denina in London, A.
Ananthalakshmi in Singapore; Editing by Andrew Hay and Grant
McCool)
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