Gold steadies leaving back a sharp fall (Reuters) (05-01-2011)

SINGAPORE – Spot gold was steady on Wednesday leaving back a more than two percent fall in the previous session as dollar was supported to remain strong. It gained 0.3 percent to $1,383.16 an ounce by 0651 GMT, after posting its biggest daily loss since Nov 12 on Tuesday.

U.S. gold rose by 0.3 percent to $1,383.1 while spot gold has a new goal at $1,360 per ounce as the deep fall in the previous session only completed part of a big downtrend.

Holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to a seven-month low at 1,276.472 tonnes by Jan 4.

The dollar was firm on Wednesday, while a correction in high-flying commodity prices pressured the Australian dollar.

Spot platinum fell to a 1-1/2 week low of $1,723.5, and recovered to $1,733.45.        

Spot palladium fell 0.7 percent to $769.9.

Source: Reuters