PRECIOUS-Gold comes off 1-month high despite firmer euro

Reuters Middle East

* Gold to range from $1,746-$1,755-technicals

* Coming Up: U.S. Dallas Fed Texas manufacturing No; 1530


(Adds comments from physical market)

By Lewa Pardomuan

SINGAPORE, Nov 26 (Reuters) - Gold shrugged off the

influence of a firmer euro and turned lower on Monday as

speculators booked profits after prices rallied to their highest

in more than a month in the previous session on technical


Speculators also turned their attention to negotiations

between the White House and Congress this week to avoid a series

of automatic tax hikes and spending cuts worth $600 billion set

for January, which could tip the economy back into recession.

Although a recession could lift the metal's safe-haven

appeal in times of uncertainty, gold would have to clear several

key resistance levels before it could revisit a record around

$1,920 hit in September 2011, when a worsening debt crisis in

Europe sparked in rush in buying.

Gold fell $3.35 an ounce to $1,749.04 by 0655 GMT

after rising to $1,754.10 on Friday, its strongest since Oct. 12

due to a drop in the dollar and options-related buying. Gold has

gained around 11 percent this year, mainly due to expectations

U.S. monetary policy will remain loose.

"It's been a huge spike, so I believe people are cautious as

they are still many unresolved issues ahead. There will be a

budget meeting in the U.S. tonight to try and find a solution to

avert the fiscal cliff. This is one of the issues," said Brian

Lan, managing director of GoldSilver Central Pte Ltd.

"Moreover, the problems in the eurozone has not been fully

resolved. Gold should meet with resistance at $1,755 and

shouldn't go above $1,760 this week."

U.S. gold for December fell $2 an ounce to


"I don't see much selling at these levels. Let's see if

gold can break through the next targets of $1,780 and $1,800,"

said a physical dealer in Hong Kong. "The premium is pretty

stable because we don't see much sell back. It's between 70

cents to $1 an ounce."

The euro touched a seven-month high against the yen

and held near a one-month peak versus the dollar on Monday on

hopes that Greece will finally secure more emergency loans to

keep it afloat.

A stronger euro makes dollar-priced gold cheaper to buy,

but cautious investors are awaiting Tuesday's survey of U.S.

consumer confidence in November, which could offer clues whether

the fiscal cliff jitters are dampening spirits.

U.S. lawmakers have made little progress in the past 10 days

towards a compromise to avoid the harsh tax increases and

government spending cuts scheduled for Jan. 1, a senior

Democratic senator said on Sunday.

"It is not clear that gold has made a decisive breakout.

We'd like to see prices above $1,760 to confirm the move. That

would pave the way for a test of $1,790-$1,800 and beyond that

the record highs above $1,920," ANZ bank said in a note.

"We think $1,800 will prove to be a step too far in the

current market, and remain confident in year-end forecast of


Precious metals prices 0655 GMT

Metal Last Change Pct chg YTD pct chg Volume

Spot Gold 1749.04 -3.35 -0.19 11.85

Spot Silver 34.06 -0.04 -0.12 23.00

Spot Platinum 1606.97 -7.73 -0.48 15.36

Spot Palladium 659.99 -2.01 -0.30 1.15

COMEX GOLD DEC2 1749.40 -2.00 -0.11 11.65 19512

COMEX SILVER DEC2 34.06 -0.06 -0.16 22.01 6101

Euro/Dollar 1.2949

Dollar/Yen 82.09

COMEX gold and silver contracts show the most active months

(Editing by Miral Fahmy and Ed Davies)

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