SINGAPORE, Oct 2 Gold fell to two-month lows on
Wednesday, rattled by a large sell order in New York that pushed
prices below $1,300 the session before and on weak safe-haven
buying after what many expect to be a short-lived U.S.
* Spot gold had dropped 0.4 percent to $1,280.35 an
ounce by 0024 GMT, after losing 3 percent on Tuesday.
* Bullion fell abruptly in early U.S. trading on Tuesday as
a massive Comex sell order appeared to overwhelm the market,
sending prices $25 an ounce lower and triggering further
technical stop-loss selling below $1,300, analysts said.
* The early activity stirred market talk of forced
liquidation by a distressed commodities fund and of selling
related to a fund rebalancing on the first day of the third
quarter, although no details could be confirmed.
* The White House rejected a Republican plan to reopen
portions of the U.S. government on Tuesday as the first shutdown
in 17 years closed landmarks like the Statue of Liberty and
threw hundreds of thousands of federal employees out of
* The anticipated unwinding of U.S. stimulus and
expectations of improving economic growth leave little room for
a rebound in gold prices over the next few years, Fitch Ratings
said, adding that a further decline remains a real possibility.
* India's only gold imports in August and September were for
exporters' use, reducing volumes to a fraction of what the
world's biggest bullion buyer used to bring in before the
government took steps to rein in purchases.
* Swiss gold refiner Metalor Technologies has postponed the
full-scale launch of its refinery in Singapore to next year due
to a delay in construction, a company executive said.
* For the top stories on metals and other news, click
* The dollar and U.S. stock futures held steady on Wednesday
as investors bet the first partial U.S. government shutdown in
17 years would be short-lived.
0900 Euro zone Producer price index
1215 U.S. ADP employment report
1230 European Central Bank interest rate decision
1345 U.S. ISM-New York business activity
1930 Federal Reserve Chairman Bernanke speaks
Precious metals prices 0024 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1280.35 -5.64 -0.44 -23.54
Spot Silver 21.03 -0.08 -0.38 -30.55
Spot Platinum 1374.00 -0.60 -0.04 -10.49
Spot Palladium 712.22 -2.78 -0.39 2.92
COMEX GOLD DEC3 1280.50 -5.60 -0.44 -23.59 8512
COMEX SILVER DEC3 21.07 -0.11 -0.52 -30.49 838
COMEX gold and silver contracts show the most active months
(Reporting by A. Ananthalakshmi; Editing by Joseph Radford)