* Gold to range from $1,746-$1,755-technicals
* Coming Up: U.S. Dallas Fed Texas manufacturing No; 1530
(Adds comments from physical market)
By Lewa Pardomuan
SINGAPORE, Nov 26 Gold shrugged off the
influence of a firmer euro and turned lower on Monday as
speculators booked profits after prices rallied to their highest
in more than a month in the previous session on technical
Speculators also turned their attention to negotiations
between the White House and Congress this week to avoid a series
of automatic tax hikes and spending cuts worth $600 billion set
for January, which could tip the economy back into recession.
Although a recession could lift the metal's safe-haven
appeal in times of uncertainty, gold would have to clear several
key resistance levels before it could revisit a record around
$1,920 hit in September 2011, when a worsening debt crisis in
Europe sparked in rush in buying.
Gold fell $3.35 an ounce to $1,749.04 by 0655 GMT
after rising to $1,754.10 on Friday, its strongest since Oct. 12
due to a drop in the dollar and options-related buying. Gold has
gained around 11 percent this year, mainly due to expectations
U.S. monetary policy will remain loose.
"It's been a huge spike, so I believe people are cautious as
they are still many unresolved issues ahead. There will be a
budget meeting in the U.S. tonight to try and find a solution to
avert the fiscal cliff. This is one of the issues," said Brian
Lan, managing director of GoldSilver Central Pte Ltd.
"Moreover, the problems in the eurozone has not been fully
resolved. Gold should meet with resistance at $1,755 and
shouldn't go above $1,760 this week."
U.S. gold for December fell $2 an ounce to
"I don't see much selling at these levels. Let's see if
gold can break through the next targets of $1,780 and $1,800,"
said a physical dealer in Hong Kong. "The premium is pretty
stable because we don't see much sell back. It's between 70
cents to $1 an ounce."
The euro touched a seven-month high against the yen
and held near a one-month peak versus the dollar on Monday on
hopes that Greece will finally secure more emergency loans to
keep it afloat.
A stronger euro makes dollar-priced gold cheaper to buy,
but cautious investors are awaiting Tuesday's survey of U.S.
consumer confidence in November, which could offer clues whether
the fiscal cliff jitters are dampening spirits.
U.S. lawmakers have made little progress in the past 10 days
towards a compromise to avoid the harsh tax increases and
government spending cuts scheduled for Jan. 1, a senior
Democratic senator said on Sunday.
"It is not clear that gold has made a decisive breakout.
We'd like to see prices above $1,760 to confirm the move. That
would pave the way for a test of $1,790-$1,800 and beyond that
the record highs above $1,920," ANZ bank said in a note.
"We think $1,800 will prove to be a step too far in the
current market, and remain confident in year-end forecast of
Precious metals prices 0655 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1749.04 -3.35 -0.19 11.85
Spot Silver 34.06 -0.04 -0.12 23.00
Spot Platinum 1606.97 -7.73 -0.48 15.36
Spot Palladium 659.99 -2.01 -0.30 1.15
COMEX GOLD DEC2 1749.40 -2.00 -0.11 11.65 19512
COMEX SILVER DEC2 34.06 -0.06 -0.16 22.01 6101
COMEX gold and silver contracts show the most active months
(Editing by Miral Fahmy and Ed Davies)