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PRECIOUS-Spot gold falls 0.7 pct, reverses rally

Published 08/28/2011, 08:48 PM
Updated 08/28/2011, 08:52 PM
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SINGAPORE, Aug 29 (Reuters) - Spot gold fell on Monday, retreating from a more than 3 percent rise in the previous session when the U.S. Federal Reserve Chairman Ben Bernanke raised hopes that the central bank could consider further stimulus measures to spur the economy.

FUNDAMENTALS

* Spot gold fell 0.7 percent to $1,815.16 an ounce by 0035 GMT.

* U.S. gold gained 1.2 percent to $1,818.80.

* U.S. Federal Reserve Chairman Ben Bernanke on Friday stopped short of detailing further action to boost the economy but said the central bank would consider what more it could do to fight high unemployment.

* Holdings in the world's biggest gold-backed exchange-traded fund, SPDR Gold Trust , edged lower to 1,230.799 tonnes by Aug 26. The fund recorded a nearly 60 tonnes of outflow last week, but had an inflow of 22.5 tonnes so far this month.

* Money managers trimmed their net length in gold futures and options for a third straight week, even as bullion prices shot up by another 7 percent to fresh records above $1,900 an ounce, data on Friday showed.

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

MARKET NEWS

* Wall Street posted its first weekly gain in more than a month as Bernanke raised hopes for more stimulus for the economy at the U.S. central bank's September meeting.

* The dollar held steady on Monday, after tumbling on Friday following Bernanke's speech which stopped short of detailing further action to spur a faltering economy.

DATA/EVENTS (GMT)

1230 U.S. Personal Income Jul

1230 U.S. Midwest manufacturing Jul

1400 U.S. Pending Home Sales Jul

PRICES Precious metals prices 0035 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1815.16 -13.34 -0.73 27.88 Spot Silver 41.16 -0.33 -0.80 33.38 Spot Platinum 1832.75 5.10 +0.28 3.69 Spot Palladium 753.13 1.13 +0.15 -5.80 COMEX GOLD DEC1 1818.80 21.50 +1.20 27.96 11461 COMEX SILVER SEP1 41.19 0.24 +0.58 33.13 1442 Euro/Dollar 1.4476 Dollar/Yen 76.72 TOCOM prices in yen per gram. Spot prices in $ per ounce. COMEX gold and silver contracts show the most active months (Reporting by Rujun Shen; Editing by Himani Sarkar)

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