Spot Gold Price Steady as Presured Rising Dollar

Spot gold price steady on under the pressure of a rising dollar, after prices

fell more than 1 percent in the previous session when the U.S. Federal Reserve decided to twist its balance sheet more heavily towards long-term securities.

Spot gold edged down 0.1 percent to $1,779.59 an ounce by 0023 GMT, after losing 1.3 percent in the previous session.

U.S. gold GCcv1 fell as much as 1.5 percent in early hours to $1,781.3, tracking losses in spot gold. It traded down 1.4 percent to $1,783.10.

The U.S. Federal Reserve launched an effort to put more downward pressure on long-term interest rates and increase its support for housing.

Equities and commodities prices tumbled after the Fed announcement disappointed investors who had hoped for stronger stimulus measures.

Greece adopted yet more austerity measures on Wednesday to secure a bailout installment crucial to avoid running out of money next month, as the IMF warned that Europe's sovereign debt crisis risks tearing a giant hole in banks' capital.

U.S. existing home sales rose in August to their highest in five months as lower prices and rock-bottom interest rates drew more buyers into a still moribund market.

U.S. stocks suffered their worst drop in a month after the Federal Reserve said there were "significant downside risks" to the economy even as it took another stab at boosting growth.

The dollar rose 0.6 percent against a basket of currencies on Thursday, buoyed by the appeal of higher short-term rates, after the Fed said it would shift its portfolio in favour

of long-term bonds.

DATA

0658 France Markit Mfg Flash PMI Sep 2011

0728 Germany Markit Mfg Flash PMI Sep 2011

0758 EZ Markit Mfg flash PMI Sep 2011

1230 U.S. Initial jobless claims Weekly

1400 U.S. Leading indicators Aug

PRICES

Precious metals prices 0023 GMT

Metal Last Change Pct chg YTD pct chg Volume

Spot Gold 1779.59 -1.70 -0.10 25.37

Spot Silver 39.61 0.01 +0.03 28.35

Spot Platinum 1756.49 0.04 +0.00 -0.62

Spot Palladium 688.97 2.57 +0.37 -13.82

TOCOM Gold 4399.00 -49.00 -1.10 17.97 31790

TOCOM Platinum 4367.00 -40.00 -0.91 -7.01 3686

TOCOM Silver 97.10 -0.70 -0.72 19.88 428

TOCOM Palladium 1719.00 -68.00 -3.81 -18.03 248

COMEX GOLD DEC1 1783.10 -25.00 -1.38 25.45 3507

COMEX SILVER DEC1 39.70 -0.77 -1.91 28.30 554

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