PRECIOUS-Gold above $1,750, up 1.4 pct on weak dlr, technicals

Reuters Middle East

* Spot gold breaks above 50 DMA first time in over month

* Greek aid hopes, German business sentiment hit dollar

* Heavy buying related to option expiration helps-traders

* Coming up: U.S. Chicago Fed index Monday

(Adds market details, graphic link, updates prices)

By Frank Tang

NEW YORK, Nov 23 (Reuters) - Gold rose above $1,750 an ounce

for the first time in five weeks on Friday, gaining 1.3 percent,

as a drop in the dollar and options-related buying triggered a

technical breakout.

After trading slightly higher throughout early U.S.

dealings, gold surged suddenly to above its 50-day moving

average, a key technical resistance it had failed to breach in

more than a month.

Analysts said Friday's gains could lead to a test above the

more formidable $1,800 level, which bullion has not seen since

its rally to a record $1,920.30 in September 2011.

(Gold above key moving averages:

"It's definitely a technical breakout above the 50-day

moving average for the short term. If we break above $1,800, the

next real significant resistance will be the prior all-time high

near $1,900," said Adam Sarhan, CEO of Sarhan Capital.

Bullion also tracked higher with U.S. equities as both

markets posted sharp gains in abbreviated sessions after the

Thursday's Thanksgiving holiday. For the week, gold gained 2.3

percent after losing one percent last week.

Spot gold was up 1.4 percent at $1,752.50 an ounce by

1:56 p.m. EST (1856 GMT).

U.S. COMEX gold futures for December delivery settled

up $23.20 an ounce at $1,751.40.

Trading volume, which included Thursday's brief electronic

dealings, topped 200,000 lots at about 15 percent above its

250-day average, preliminary Reuters data showed.

Gold out performed other commodities, which also benefited

from a weaker dollar. The U.S. dollar index is down 1

percent on hopes for a Greek aid package and in reaction to a

surprise improvement in German business sentiment.

"The dollar here is just getting smacked so hard in a really

thin market, so it's easy for gold and silver to break out of

some key levels without a lot of resistance," said Matthew

Schilling, commodities broker at futures brokerage RJ O'Brien.

Silver rose 2.5 percent to $34.10 an ounce. Silver,

which tends to be more volatile than gold, posted a weekly gain

of 5.6 percent, more than doubled bullion's.


Strong buying related to next Tuesday's expiration of the

popular December COMEX options also lifted gold. Heavy

positioning of the $1,750 and $1,800 strikes in call options

could increase volatility and lift prices, dealers said.

Price volatility also tends to rise ahead of December's

first-notice day next Friday, traders said.

Rising open interest in COMEX gold futures suggested that

investors are more inclined to own gold longer, as they switched

their December contracts to February futures before first-notice

day, said George Gero, vice president of RBC Capital Markets.

Among other precious metals, platinum was up 2.2

percent at $1,614.70 an ounce, while palladium gained 1.2

percent to $662 an ounce.



US Gold DEC 1751.40 23.20 1.3 1727.60 1755.00 153,370

US Silver DEC 34.116 0.766 2.3 33.235 34.160 39,517

US Plat JAN 1617.10 33.20 2.1 1573.40 1626.60 9,099

US Pall DEC 667.60 16.30 2.5 644.85 669.70 6,124

Gold 1752.50 23.45 1.4 1729.11 1754.10

Silver 34.100 0.820 2.5 33.280 34.130

Platinum 1614.70 35.30 2.2 1577.30 1620.25

Palladium 662.00 7.60 1.2 654.00 667.50



US Gold 200,687 155,878 175,537 12.6 -0.22

US Silver 52,353 47,208 56,158 20.04 -0.05

US Platinum 9,373 8,699 9,482 17.93 -0.21

US Palladium 8,623 4,419 4,569

(Additional reporting by Jan Harvey and David Brough in London;

Editing by John Wallace and Bob Burgdorfer)

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