* Brazil raises gold holdings
* Clinton pursues Gaza truce
* Some traders see gold rangebound before Thanksgiving
By David Brough
LONDON, Nov 21 Gold eased on Wednesday as the
dollar firmed after Greece's lenders failed to strike a debt
deal for the country, although bullion found underlying support
from continued talks aimed at averting a U.S. fiscal crisis.
Spot gold slipped 0.1 percent to $1,725.78 an ounce
by 1217 GMT, hurt by a drop in the euro. U.S. gold was
up 0.15 percent at $1,726.10.
European shares and the euro fell after Greece's
international lenders failed to reach an agreement needed to
provide it with emergency aid, though some of the losses were
recouped on talk that a deal was close.
"The Greece developments are not very euro supportive, and
this is weighing on gold," said Bayram Dincer, analyst with LGT
A strong dollar normally weighs on commodities priced in the
greenback, including gold, as it makes them more expensive for
buyers holding other currencies.
International lenders failed for the second week to reach a
deal to release emergency aid for Greece and will try again next
Monday, but Germany signalled that major divisions remain.
Losses in bullion were checked however by expectations that
U.S. lawmakers would reach a deal to avert automatic tax hikes
and spending cuts in early 2013, which could otherwise trigger
Federal Reserve Chairman Ben Bernanke said on Tuesday that
2013 could be a "very good year" for the U.S. economy if
politicians can strike a quick deal to avoid the so-called
The conflict in the Middle East helped to support the gold
price. A failure to reach a cease-fire would further support
gold's safe-haven appeal, analysts said.
Gold can sometimes be viewed as a safe haven investment,
especially in times of great uncertainty.
U.S. Secretary of State Hillary Clinton on Wednesday pursued
a Gaza truce, with Israel and Hamas still at odds over key
terms, as Israeli air strikes shook the enclave and Palestinian
rockets hit across the border.
CENTRAL BANK GOLD RESERVES
News that Brazil, Kazakhstan and Turkey had raised their
gold holdings also supported gold prices.
Brazil raised its gold holdings by 17.170 tonnes in October,
data from the International Monetary Fund showed on Wednesday,
bringing its bullion reserves to 52.518 tonnes.
"This is a chunky purchase by a central bank, and the gold
market will likely sit up and pay attention to today's news, not
just because of its size but because this is a central bank that
has not been active in the market for some time," UBS said in a
note to clients.
Traders and analysts expect gold to remain rangebound as
some traders unwind long positions before Thanksgiving, but say
the longer-term outlook for gold remains positive due to
expectations of a continuing ultra-loose monetary environment in
the United States.
Spot silver eased 0.33 percent to $33.05 an ounce.
Platinum edged up 0.06 percent to $1,570.25, while
palladium was last at $634.5, up 0.20 percent.