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PRECIOUS-Silver rally fades, gold edges down; Fed meeting eyed

Published 04/25/2011, 08:53 PM
Updated 04/25/2011, 09:00 PM
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SINGAPORE, April 26 (Reuters) - The stunning rally in silver fizzled on Tuesday and gold edged lower after a seven-day record-setting run, as market participants return from the long Easter weekend and focus on a U.S. Federal Reserve policy meeting starting later in the day.

FUNDAMENTALS

* Spot silver fell by 0.8 percent to $46.53 an ounce by 0036 GMT, after surging to $49.31 in the previous session, just below the life-time high of $49.48 hit on Jan. 18, 1980, according to Reuters data .

* U.S. silver futures lost 1.3 percent to $46.53. It jumped as much as 8 percent to $49.82 on Monday, a hair off the record of $50.35 reached in 1980.

* CME on Monday raised COMEX 5000 Silver <0#SI:> maintenance margins for speculators by 9.2 percent to $9,500 per contract from $8,700 effective Tuesday, April 26. [ID:nL3E7FP2EW]

* Spot gold edged down 0.2 percent to $1,505.06, off the record high of $1,518.10 set in the previous session.

* U.S. gold futures also eased from its all-time peak of $1,519.2, to $1,505.60.

* Holdings in the world's largest physically backed exchange-traded fund, iShares Silver Trust , rallied more than 2 percent to a record high of 11,390.06 tonnes by April 25.

* For the top stories on metals and other news, click , or

MARKET NEWS

* In the lightest volume session of the year, U.S. stocks fell on Monday after a lowered outlook from Kimberly-Clark increased concerns about higher commodity costs squeezing profits in coming quarters.

* The dollar index inched up, but the greenback is seen to remain pressured if the upcoming Fed meeting shows no sign of changing its easy monetary policy.

DATA/EVENTS :: U.S. Start of two-day FOMC meeting :: U.S. CocaCola earnings Q1 1100 U.S. Ford Motor earnings Q1 1145 U.S. ICSC chain stores yy Weekly 1255 U.S. Redbook mm Weekly 1300 U.S. CaseShiller 20 mm nsa Feb 1300 U.S. CaseShiller 20 yy Feb 1400 U.S. Consumer confidence Apr 1400 U.S. Richmond Fed mfg Apr :: U.S. Build permits R chg mm Mar

PRICES Precious metals prices 0036 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1505.06 -3.39 -0.22 6.03 Spot Silver 46.53 -0.37 -0.79 50.78 Spot Platinum 1807.49 -11.81 -0.65 2.26 Spot Palladium 754.00 -3.80 -0.50 -5.69 COMEX GOLD JUN1 1505.60 -3.50 -0.23 5.92 3270 COMEX SILVER MAY1 46.53 -0.62 -1.32 50.37 7751 Euro/Dollar 1.4521 Dollar/Yen 81.68 COMEX gold and silver contracts show the most active months (Reporting by Rujun Shen; Editing by Himani Sarkar)

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