September 10, 2013 / 1:06 AM / in 4 years

PRECIOUS-Weaker oil, strong equities clip gold prices

* Gold may revisit Sept. 6 low -technicals 
    * Coming Up: U.S. ICSC weekly chain store sales; 1145 GMT

 (Updates prices, adds premiums in Singapore)
    By Lewa Pardomuan
    SINGAPORE, Sept 10 (Reuters) - Gold tracked oil lower on
Tuesday after Russia offered to work with Damascus to put
Syria's chemical weapons under international control, while
firmer equities also dented the precious metal's appeal.
    Bullion, which has slipped nearly 18 percent this year,  is
also under pressure from expectations the U.S. Federal Reserve
will opt to taper its monetary stimulus programme after 
the Fed's Open Market Committee (FOMC) meeting on Sept. 17-18.
 
    Gold fell $8.74 an ounce to $1,378.20 by 0636 GMT,   
   
well below an all-time high around $1,920 struck in September
2011. The Fed's stimulus, known as quantitative easing or QE,
has been a key driver in gold's rally in recent years.
    "People are waiting for the next FOMC meeting to see whether
they are going to end the QE or reduce buying debts. Sentiment
is not that bullish," said Ronald Leung, chief dealer at Lee
Cheong Gold Dealers in Hong Kong.
    "I think $1,400 will be capped for the time being. Physical
demand is very weak in Hong Kong." 
    Premiums for gold bars were little changed from last week at
$2 to $2.50 an ounce in Hong Kong to spot London prices,
reflecting a lack of activity in the physical market.
 
    Spot gold may have completed a rebound from the Sept. 6 low
of $1,362.55 per ounce and is expected to revisit that low, says
Wang Tao, a Reuters market analyst for commodities and energy
technicals. 
    U.S. gold was at $1,378.70 an ounce, down $8.00.   
     
    Brent crude futures fell to a one-week low below $113 a
barrel on Tuesday after Russia's proposal to avert a possible
U.S. strike against Syria.  
    Investors shifted some of their money to equities after
stocks in Asia hit three-month highs as investors wagered
upcoming Chinese data would add to signs the global economy is
stabilising. 
    The Nikkei closed at a 5-1/2-week high as companies expected
to benefit from the 2020 Summer Olympics kept drawing retail
investors, while positive leads from global markets and China
data boosted sentiment. 
    A weaker yen and recent gains in the yen denominated Tokyo
gold futures spurred selling in the physical market in
Japan. Gold premiums were on par to 25 cents below the spot
London prices. 
    "We were quoting gold bars at zero premiums last week, but
the yen is getting weaker, so the general public is selling gold
to us at this moment," said a physical dealer in Tokyo.
    Premiums in Singapore were steady from last week at $1 to
$1.50 an ounce. "Physical demand has picked up but it's not
great. Indonesian clients are still selling gold because of a
weak rupiah," said a dealer in Singapore. 
    SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.23 percent to
917.13 tonnes on Monday from 919.23 tonnes on Friday. 
    
  Precious metals prices 0636 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1378.20   -8.74   -0.63    -17.70
  Spot Silver        23.28   -0.38   -1.61    -23.12
  Spot Platinum    1475.90   -3.70   -0.25     -3.85
  Spot Palladium    684.22    1.22   +0.18     -1.12
  COMEX GOLD DEC3  1378.70   -8.00   -0.58    -17.73        19811
  COMEX SILVER DEC3  23.38   -0.34   -1.44    -22.87         7590
  Euro/Dollar       1.3269
  Dollar/Yen         99.88
 
  COMEX gold and silver contracts show the most active months
 
    
    

 (Editing by Clarence Fernandez and)

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