September 23, 2013 / 10:24 AM / 6 years ago

PRECIOUS-Gold falls on renewed Fed tapering worries

* Bernanke's stimulus unwind timelime intact- Fed's Dudley
    * Buyers stay on sidelines on uncertain tapering timeline
    * SPDR Gold Shares holdings down 0.2 pct Friday
    * Coming up: S&P home price index, consumer confidence Tues

 (Adds trader comment, second byline, dateline, updates market
activity)
    By Frank Tang and Jan Harvey
    NEW YORK/LONDON, Sept 23 (Reuters) - Gold edged down on
Monday on renewed worries that the U.S. Federal Reserve will
begin cutting its bond-buying purchases as early as next month.
    Federal Reserve Bank of New York President William Dudley
said the timeline that Fed chief Ben Bernanke articulated in
June for scaling back the central bank's stimulus measures is
"still very much intact," as long as the economy keeps
improving. 
    Bullion investors were already on edge after St Louis
Federal Reserve President James Bullard on Friday said the Fed
might move during its October policy meeting to reduce stimulus
spending, sending gold 3 percent lower. 
    An uncertain timeline for the Fed to unwind its monetary
stimulus on signs of disappointing growth in the housing and job
markets have led to increased volatility in the gold market.
    "Gold is going to see more downward pressure as continued
slow U.S. growth should allow the Fed to slowly ease out its
position on stimulus," said head precious metals dealer at
commodities brokerage Alliance Financial LLC.
    Spot gold was down 0.2 percent at $1,322.41 an ounce
by 3:22 p.m. EDT (1922 GMT).
    U.S. gold futures for December delivery settled down
$5.50 an ounce at $1,327, with trading volume at 20 percent
below its 30-day average, preliminary Reuters data showed. 
    Gold prices have fallen 21 percent this year, driven largely
by Fed hints in May that it could begin to rein in its $85
billion monthly bond-buying stimulus before the end of 2013. 
    "After last week's move a lot of people are confused on how
the market is going and are trying to avoid big positioning
ahead of next week's non-farm payrolls," MKS SA head of trading
Afshin Nabavi said.
    Prices have fallen more than 20 percent this year, driven
largely by Fed hints that it may begin to rein in its $85
billion monthly bond-buying program before the end of 2013.
Uncertainty over the timing of the move has led to choppy
trading.
    Interest in gold-backed exchange traded funds remained
relatively soft, with holdings of the world's largest, SPDR Gold
Shares, easing 0.2 percent to 910.19 tonnes as of Friday.
That has brought its total outflow for the year to 440 tonnes.
    Among other precious metals, silver was down 0.5
percent to $21.68 an ounce. Platinum fell 0.7 percent to
$1,417.74 an ounce and palladium eased 0.5 percent to
$710.97 an ounce.
 3:22 PM EDT     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold DEC   1327.00  -5.50  -0.4  1313.40 1332.00  126,671
 US Silver DEC  21.857 -0.070  -0.3   21.300  21.970   42,181
 US Plat OCT   1425.90  -6.70  -0.5  1420.00 1437.00   13,143
 US Pall DEC    717.95  -4.00  -0.6   707.65  722.85    3,307
                                                              
 Gold          1322.41  -2.58  -0.2  1314.63 1331.50         
 Silver         21.680 -0.110  -0.5   21.420  21.920
 Platinum      1417.74  -9.66  -0.7  1425.25 1433.99
 Palladium      710.97  -3.23  -0.5   710.02  719.72
                                                              
 TOTAL MARKET              VOLUME          30-D ATM VOLATILITY
                CURRENT   30D AVG  250D AVG   CURRENT     CHG
 US Gold        136,758   161,668   180,237      22.8   -4.78
 US Silver       43,955    68,045    57,843     33.38   -0.23
 US Platinum     20,934    11,707    12,410     20.15   -0.49
 US Palladium     3,391     6,824     5,886                  
                                                              
  

 (Reporting by Frank Tang and Jan Harvey; Editing by Theodore
d'Afflisio)
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