* Euro slides to 6-week low after IMF chief arrest
* Gold may retreat to $1,456/oz - technicals [ID:nL4E7GG02I]
* Coming up: Euro zone finance ministers meeting (Add Shanghai exchange margin decrease; updates prices)
By Rujun Shen
SINGAPORE, May 16 (Reuters) - Gold held steady and silver slid on Monday, pressured by a firm dollar as fears about the euro zone debt crisis deepened ahead of a meeting of the bloc's finance ministers.
The euro slid to a seven-week low against the dollar after IMF Chief Dominique Strauss-Kahn, a key voice in euro zone debt talks, was charged with sexual assault, increasing uncertainty on aid for Greece and other indebted euro zone countries.
The dollar index <.DXY>, a measure of the greenback's
strength against a basket of currencies, advanced to its
highest since early April. [USD/][ID:nN15215355] Spot gold
U.S. gold
"Gold could reverse recent falls and stand above the support level of $1,500 over the next week, as safe-haven buying could resume on re-ignited euro zone sovereign debt concerns," said Natalie Robertson, commodities strategist at ANZ.
Euro zone finance ministers are likely to back a bailout package for Portugal in a meeting later on Monday.[ID:nLDE74E0N7]
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Technical outlook on gold: [ID:nL4E7GG02I]
IMF chief charged with sex assault [ID:nLDE74E04O]
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Spot silver
U.S. silver
"The market is very quiet and waiting for fresh interest," said a Singapore-based trader, "People are cautious and don't want to put on a position and see the market move in the other direction."
Market participants are awaiting a speech by the U.S. Federal Reserve chief Ben Bernanke later in the day, in which he was expected to repeat the stance that the Fed is in no rush to raise interest rates.
Gasoline and food prices pushed U.S. inflation to a 2-1/2-year high in April, but there was little sign of a broader pick-up in consumer prices that would trouble the Fed. [ID:nN13177993]
The Shanghai Gold Exchange, China's main precious metals bourse, said it will lower the margin requirement on silver forward contracts (T+D) to 15 percent on Monday's settlement from 18 percent, after market volatility ebbed.
Shanghai silver
A decline in the prices of precious metals in recent weeks fueled an exodus of investment interest in exchange-traded funds, as well as in futures and options markets.
Holdings in the SPDR Gold Trust
Managed money sharply scaled back their bullish bets in COMEX silver futures and options to the lowest level since January, as prices tumbled as much as 30 percent from a record high near $50 an ounce, U.S. regulator data showed on Friday. [ID:nN13278663] Rising global inflation, uncertainties in euro zone's fiscal conditions and ongoing unrest in the Middle East and North Africa will likely to continue to drive nervous investors to precious metals, especially gold, analysts said.
"With the outlook for PGMs (platinum group metals) blemished by the disruption in the global auto sector supply chain and silver continuing to trade in extremely volatile conditions, we expect investors will look increasingly toward gold to hedge systemic financial risk," said Morgan Stanley in a research note. Precious metals prices 0625 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1493.09 -0.16 -0.01 5.19 Spot Silver 34.54 -0.74 -2.10 11.92 Spot Platinum 1753.99 -2.06 -0.12 -0.76 Spot Palladium 703.72 -1.98 -0.28 -11.98 TOCOM Gold 3896.00 -28.00 -0.71 4.48 54313 TOCOM Platinum 4612.00 -20.00 -0.43 -1.79 11609 TOCOM Silver 89.80 -1.60 -1.75 10.86 4576 TOCOM Palladium 1847.00 -23.00 -1.23 -11.92 154 COMEX GOLD JUN1 1493.10 -0.50 -0.03 5.04 12508 COMEX SILVER JUL1 34.58 -0.44 -1.25 11.75 9543 Euro/Dollar 1.4101 Dollar/Yen 80.92 TOCOM prices in yen per gram. Spot prices in $ per ounce. COMEX gold and silver contracts show the most active months (Editing by Ed Lane)