September 21, 2011 / 3:30 AM / in 6 years

PRECIOUS-Gold edges up ahead of Fed decision

 * Spot gold headed for biggest quarterly rise in 25 years
 * Spot gold to remain rangebound-technicals 
 * Coming up: FOMC statement; 1815 GMT

 (Adds comments; updates prices)	
 By Rujun Shen	
 SINGAPORE, Sept 21 (Reuters) - Gold prices edged up on
Wednesday, as worries about a worsening euro zone debt crisis
supported safe-haven sentiment ahead of the conclusion of a U.S.
Federal Reserve policy meeting.	
 The Fed, which has made clear it is intent on taking further
steps to lift growth, is expected to decide to stock up on
longer-term Treasury notes to boost a faltering
 In the latest sign that U.S. growth has stalled, new
construction of U.S. homes fell more than expected in August,
keeping pressure on President Barack Obama to do more to help
the economy. 	
 "The expectation of some sort of easing from the Fed and
poor economic data will make it difficult for gold to break
sharply below $1,800," said Li Ning, an analyst at Shanghai
CIFCO Futures.	
 Spot gold edged up 0.3 percent to $1,808.69 an ounce
by 0556 GMT, after a 1.4-percent rally in the previous session.	
 Gold is headed for a 20-percent jump in the third quarter,
its biggest quarterly rise in 25 years.	
 U.S. gold GCcv1 inched up 0.2 percent to $1,811.90.	
 Technical analysis suggested that spot gold may move
sideways in a range of $1,761.94 and $1,811 an ounce during the
day, Reuters market analyst Wang Tao said. 	
 Market participants moved to the sidelines ahead of the Fed
 "Those who hold short positions built up in the beginning of
the week might want to square them off," said a Hong Kong-based
trader. "It is a wild card to call what is going to come out of
 If the Fed announces measures short of another round of
quantitative easing, gold is likely to slip below $1,800 as
disappointed investors might sell bullion to cover potential
losses in equities, he added.	
 Asian stocks edged up and the euro clawed back lost ground
as investors waited for the Fed statement. 	
 Gold's rally will extend beyond $2,000 an ounce in the next
year, but will not match the record-breaking 50 percent surge of
the last 12 months, according to an annual survey of gold
investors and analysts at the world's biggest bullion traders
   Precious metals prices 0556 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1808.69    5.44   +0.30     27.42
  Spot Silver        40.02    0.34   +0.86     29.68
  Spot Platinum    1782.74   11.04   +0.62      0.86
  Spot Palladium    716.13    4.15   +0.58    -10.43
  TOCOM Gold       4448.00   73.00   +1.67     19.28        58450
  TOCOM Platinum   4417.00   28.00   +0.64     -5.94         7986
  TOCOM Silver       97.70    1.60   +1.66     20.62          618
  TOCOM Palladium  1784.00   10.00   +0.56    -14.93          237
  COMEX GOLD DEC1  1811.90    2.80   +0.15     27.47        16807
  COMEX SILVER DEC1  40.08   -0.06   -0.14     29.54         1962
  Euro/Dollar       1.3692
  Dollar/Yen         76.35
  TOCOM prices in yen per gram. Spot prices in $ per ounce.
  COMEX gold and silver contracts show the most active months
 (Editing by Michael Urquhart)	

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below