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PRECIOUS-Gold falls for 7th day on dollar rise, technicals
November 5, 2013 / 10:46 AM / 4 years ago

PRECIOUS-Gold falls for 7th day on dollar rise, technicals

* Gold surrenders early gains
    * Dollar benefits from euro weakness
    * ECB decision, U.S. non-farm payrolls data awaited
    * Coming up: U.S. lead indicators Wednesday


    By Frank Tang and Jan Harvey
    NEW YORK/LONDON, Nov 5 (Reuters) - Gold prices fell on
Tuesday for the seventh consecutive session as a combination of
the resurgent dollar, technical selling and lackluster fund
interest extended the precious metal's losing streak. 
    Bullion rose earlier in the New York session, but the gains
soon faded as the dollar strengthened following U.S. data
showing service-sector business activity picked up in October.
 
    "The market continues to fail to hold rallies, reflecting a
lack of interest from the big players to drive gold prices
higher," said Bill O'Neill, a partner in the commodities
investment firm LOGIC Advisors. 
    Technical resistance between gold's 100-day average at
$1,320 and 50-day average at $1,335 also keeps the metal from
rallying, traders said.
    Spot gold was down 0.3 percent at $1,310.76 an ounce
by 2:26 p.m. EST (1926 GMT).
    U.S. gold futures for December delivery settled down
$6.60 an ounce at $1,308.10.
    Trading volume was about 30 percent below its 30-day
average, preliminary Reuters data showed, continuing a weak
trend. Monday's turnover was one of the lowest this year.

    Gold has lost 3 percent during its seventh-day drop, the
longest decline since mid-May, weighed down by strong outflows
from gold exchange-traded funds amid worries that the U.S.
Federal Reserve may cut its monetary stimulus.
    Investors are shifting their focus to Friday's U.S. non-farm
payrolls numbers. 
    Speculation is rife that the European Central Bank may
signal easier monetary policy or even cut rates at a meeting on
Thursday, and this boosted the dollar index against a
basket of major currencies, pressuring gold. 
    
    PRIVATE INVESTOR RESILIENT, INDIA EYED
    A survey by online precious metals market BullionVault said
on Tuesday that physical gold buying among private investors
rose in October to its strongest level since April.
    The gauge, which measures the balance of customers adding to
their gold holdings over those reducing them, rose to 54.3 in
October from 53 in September. A reading of 50 signals an equal
number of net gold buyers and sellers. 
    Gold demand in major consumer India failed to pick up on
Tuesday. Consumers bought little gold over the weekend during
Diwali, the Hindu festival of lights, which is traditionally a
major gold-buying event, dealers said. 
    Among other precious metals, silver edged up 0.1
percent to $21.67 an ounce. Platinum fell 0.3 percent to
$1,445 an ounce, while palladium edged up 0.1 percent to
$747.

 2:26 PM EDT     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold DEC   1308.10  -6.60  -0.5  1305.20 1320.60   93,174
 US Silver DEC  21.636 -0.064  -0.3   21.560  21.790   23,485
 US Plat JAN   1450.00  -6.20  -0.4  1448.30 1459.70    5,418
 US Pall DEC    750.30   0.80   0.1   742.90  755.00    6,405
                                                               
 Gold          1310.76  -3.60  -0.3  1306.75 1319.16         
 Silver         21.670  0.030   0.1   21.590  21.760
 Platinum      1445.00  -4.74  -0.3  1451.00 1456.50
 Palladium      747.00   0.50   0.1   744.50  751.50
                                                               
 TOTAL MARKET              VOLUME          30-D ATM VOLATILITY
                CURRENT   30D AVG  250D AVG   CURRENT     CHG
 US Gold        103,685   151,221   187,328     19.93   -0.24
 US Silver       26,645    41,214    55,164     28.17   -0.76
 US Platinum      5,579    12,718    12,879     18.22    0.00
 US Palladium     7,124     4,131     5,665

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