* Bullion traded in narrow $10 range
* Gold at key technical support near $1,280/oz
* Fed to release minutes from October policy meeting Weds
By Frank Tang and Clara Denina
NEW YORK/LONDON, Nov 19 Gold prices were little
changed on Tuesday, stabilizing after Monday's sharp losses, as
investors looked forward to the minutes of the Fed's October
meeting for clues about future monetary policy.
Platinum and palladium rose on supply worries after South
African utility Eskom declared a power emergency on Tuesday, a
move that could reduce output at mines and smelters. Gains in
platinum group metals, however, petered out later in the day.
Bullion largely treaded water in a narrow $10 range,
following the largely flat currency and equities markets amid a
lack of major U.S. economic indicators.
Rick Bensignor, head of trading strategy at Wells Fargo
Securities, said gold is hovering at critical support near
$1,280 an ounce based on the Ichimoku technical cloud model, and
a break below that could see a swift drop to $1,111.
"Some long-term players may say the risk is low to buying.
If they are right, this will be near the bottom for the whole
(down) move, and if they are wrong, they risk losing $160 before
they find the next important support," Bensignor said.
Spot gold was up 0.1 percent at $1,274.44 an ounce by
3:05 p.m. EST (2005 GMT), after Monday's 1.2 percent drop.
U.S. gold futures for December delivery settled up
$1.20 at $1,273.50 an ounce, with trading volume about 40
percent below its 250-day average.
A drop in the dollar index against a basket of
currencies also underpinned gold prices.
The president of the Federal Reserve Bank of Chicago said
the U.S. central bank should wait until next year, possibly
until March, before beginning to wind down its massive
Wednesday will see the release of the minutes from the Fed's
October meeting, which may give investors clues about future
Investor sentiment remained bearish amid stronger stock
markets. SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings fell 1.2 tonnes to
864.51 tonnes on Monday - the smallest since February 2009.
Silver eased 1 cent at $20.37 an ounce.
Platinum rose 0.2 percent to $1,411.40 an ounce,
benefiting from news that South African power utility Eskom had
declared an emergency after the grid came under severe
constraint due to the loss of additional generating units.
Palladium was up 0.5 percent to $718.47 an ounce.
The metal's 50-day moving average was poised to break above
its 200-day moving average, known as a golden cross, suggesting
the autocatalyst metal has room to rally in the next several
months, analysts said.
3:05 PM EST LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold DEC 1273.50 1.20 0.1 1268.00 1278.20 93,854
US Silver DEC 20.334 -0.023 -0.1 20.200 20.475 40,476
US Plat JAN 1419.90 8.90 0.6 1405.10 1425.50 8,271
US Pall DEC 721.90 5.15 0.7 713.30 725.60 11,080
Gold 1274.44 0.70 0.1 1269.73 1278.41
Silver 20.370 -0.010 0.0 20.230 20.480
Platinum 1411.40 3.40 0.2 1408.00 1422.50
Palladium 718.47 3.75 0.5 716.00 723.00
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 250D AVG CURRENT CHG
US Gold 112,881 189,283 23.18 -1.01
US Silver 57,449 58,610 35.14 1.70
US Platinum 8,414 12,978 20.36 0.00
US Palladium 18,606 5,806