* Bargain hunting, dollar fall rekindle gold buying
* Gold pares gains late in NY session, equities rise
* Market looks to comments by Fed's Yellen set for Thursday
* Coming up: U.S. weekly initial jobless claims Thursday
By Frank Tang and Clara Denina
NEW YORK/LONDON, Nov 13 Gold prices eked out a
small gain on Wednesday to snap a four-day losing streak,
boosted by a drop in the dollar and bargain hunting with prices
near a one-month low.
The precious metal trimmed some of its gains later in the
New York session as the 0.5 percent gain in the S&P 500 equities
index to an intraday high dented gold's safe-haven
appeal. A two-percent drop in copper prices also pressured gold.
In the absence of U.S. economic data, bullion investors
awaited comments from Fed policymakers, including Chairman Ben
Bernanke, due to speak at 7:00 p.m. EST (0000 GMT), for clues on
the longevity of the Fed's stimulus.
Bernanke's speech comes on the heels of divergent remarks by
several other Fed officials.
Minneapolis Fed President Narayana Kocherlakota said Tuesday
monetary policy should remain accommodative, but Atlanta Fed
President Dennis Lockhart did not rule out a decision to taper
the bond-buying stimulus at the December policy meeting, though
he also said the Fed should keep policy very easy.
The precious metal fell 1 percent in the previous session,
and lost nearly 4 percent in the past four days.
"Gold's negative price reaction to the possibility of a
December Fed tapering indicates to us that the bullion market is
likely to remain sensitive to expectations for changes in
monetary policy," said James Steel, chief metals analyst at
Spot gold gained 0.2 percent to $1,269.84 an ounce by
U.S. Comex gold futures for December delivery
underperformed spot gold, settling down $2.80 at $1,268.40 an
ounce. Trading volume was 20 percent below its 250-day average,
preliminary Reuters data showed.
Investors now switch their focus to comments that Fed
Chairman nominee Janet Yellen will make at her U.S. Senate
confirmation hearing on Thursday, watching for any clues about
Silver dropped 1 percent at $20.49 an ounce after
dropping 3 percent in the previous session to a four-week low.
In physical market news, the U.S. Mint's 2013 American Eagle
silver bullion coin sales on Tuesday rose to a record high,
highlighting retail investors' strong appetite for silver
Silver prices should be underpinned by improving industrial
demand in 2014, but they will follow gold lower if the U.S.
Federal Reserve begins tapering its stimulus, a top analyst at
metals consultant Thomson Reuters GFMS said on Tuesday.
Platinum was down 0.3 percent at $1,425.90 an ounce
and palladium fell 1 percent to $729.75 an ounce.
2:22 PM EST LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold DEC 1268.40 -2.80 -0.2 1265.00 1279.80 116,141
US Silver DEC 20.442 -0.336 -1.6 20.410 20.855 63,116
US Plat JAN 1432.00 -7.60 -0.5 1428.30 1441.40 6,057
US Pall DEC 735.45 -6.90 -0.9 730.05 743.15 5,853
Gold 1269.84 2.23 0.2 1266.31 1278.86
Silver 20.490 -0.210 -1.0 20.460 20.850
Platinum 1425.90 -3.85 -0.3 1429.00 1438.50
Palladium 729.75 -7.72 -1.0 732.75 741.25
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 250D AVG CURRENT CHG
US Gold 140,247 189,283 23.18 -1.01
US Silver 89,163 58,610 35.14 1.70
US Platinum 6,291 12,978 20.36 0.00
US Palladium 8,265 5,806