* Gold surrenders early gains
* Dollar benefits from euro weakness
* ECB decision, U.S. non-farm payrolls data awaited
* Coming up: U.S. lead indicators Wednesday
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Nov 5 Gold prices fell on
Tuesday for the seventh consecutive session as a combination of
the resurgent dollar, technical selling and lackluster fund
interest extended the precious metal's losing streak.
Bullion rose earlier in the New York session, but the gains
soon faded as the dollar strengthened following U.S. data
showing service-sector business activity picked up in October.
"The market continues to fail to hold rallies, reflecting a
lack of interest from the big players to drive gold prices
higher," said Bill O'Neill, a partner in the commodities
investment firm LOGIC Advisors.
Technical resistance between gold's 100-day average at
$1,320 and 50-day average at $1,335 also keeps the metal from
rallying, traders said.
Spot gold was down 0.3 percent at $1,310.76 an ounce
by 2:26 p.m. EST (1926 GMT).
U.S. gold futures for December delivery settled down
$6.60 an ounce at $1,308.10.
Trading volume was about 30 percent below its 30-day
average, preliminary Reuters data showed, continuing a weak
trend. Monday's turnover was one of the lowest this year.
Gold has lost 3 percent during its seventh-day drop, the
longest decline since mid-May, weighed down by strong outflows
from gold exchange-traded funds amid worries that the U.S.
Federal Reserve may cut its monetary stimulus.
Investors are shifting their focus to Friday's U.S. non-farm
Speculation is rife that the European Central Bank may
signal easier monetary policy or even cut rates at a meeting on
Thursday, and this boosted the dollar index against a
basket of major currencies, pressuring gold.
PRIVATE INVESTOR RESILIENT, INDIA EYED
A survey by online precious metals market BullionVault said
on Tuesday that physical gold buying among private investors
rose in October to its strongest level since April.
The gauge, which measures the balance of customers adding to
their gold holdings over those reducing them, rose to 54.3 in
October from 53 in September. A reading of 50 signals an equal
number of net gold buyers and sellers.
Gold demand in major consumer India failed to pick up on
Tuesday. Consumers bought little gold over the weekend during
Diwali, the Hindu festival of lights, which is traditionally a
major gold-buying event, dealers said.
Among other precious metals, silver edged up 0.1
percent to $21.67 an ounce. Platinum fell 0.3 percent to
$1,445 an ounce, while palladium edged up 0.1 percent to
2:26 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold DEC 1308.10 -6.60 -0.5 1305.20 1320.60 93,174
US Silver DEC 21.636 -0.064 -0.3 21.560 21.790 23,485
US Plat JAN 1450.00 -6.20 -0.4 1448.30 1459.70 5,418
US Pall DEC 750.30 0.80 0.1 742.90 755.00 6,405
Gold 1310.76 -3.60 -0.3 1306.75 1319.16
Silver 21.670 0.030 0.1 21.590 21.760
Platinum 1445.00 -4.74 -0.3 1451.00 1456.50
Palladium 747.00 0.50 0.1 744.50 751.50
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 103,685 151,221 187,328 19.93 -0.24
US Silver 26,645 41,214 55,164 28.17 -0.76
US Platinum 5,579 12,718 12,879 18.22 0.00
US Palladium 7,124 4,131 5,665