RPT-PRECIOUS-Gold returns to near record high as dollar drops

(Repeats to more subscribers)

* Gold a few dollars below last month's record

* IMF sells 200 tonnes of gold to India's central bank

* SPDR gold holdings unchanged at 1,103.519 T

By Lewa Pardomuan

SINGAPORE, Nov 3 (Reuters) - Gold rose towards last month's
record on Tuesday as the dollar slipped ahead of a U.S.
interest rate decision, and on news the IMF had completed half
of a planned gold sale.

The International Monetary Fund said on Monday it sold 200
tonnes of gold to the Reserve Bank of India for $6.8 billion,
quietly executing half of a long-planned bullion sale that had
threatened to slow gold's rally. [ID:nN02468120]

Spot gold XAU= was quoted at $1,064.70 an ounce at 0304
GMT, up $5.55 from New York's notional close. It hit a near
two-week high of $1,066.15, within sight of a lifetime high of
$1,070.40 struck on Oct. 14.

"The fact that they've sold the gold to India would suggest
there's going to be fewer official sales by the IMF on the
market. So that might be a positive theme for the gold price,"
said David Moore, commodities strategist at Commonwealth Bank
of Australia.

The IMF sale is part of an agreement struck earlier this
year among IMF member countries to sell 403.3 tonnes of the
body's gold stocks to diversify the Fund's sources of income
and to increase low-cost lending to poor countries.

U.S. gold futures for December delivery GCZ9 added $11.6
an ounce at $1,065.60 on the COMEX division of the New York
Mercantile Exchange, within sight of last month's record of
$1,072 an ounce.

"We used to think it was all dollar related but gold seems
to behaving by itself, helped by a couple of encouraging
reports on central bank activity," said Commodity Broking
Services' Chief Executive Jonathan Barratt.

"I think if it takes out that $1,070 to $1,071 range then I
am quite happy to add positions," he added.

The U.S. dollar and the yen edged down in thin trade on
Tuesday ahead of a series of central bank meetings on interest
rates. The euro EUR= edged up to $1.4775, having gained 0.35
percent on Monday. [USD/]

The U.S. Federal Reserve starts its two-day meeting on
Tuesday and, while it is expected to keep rates unchanged,
there is speculation that it might drop or alter its pledge to
keep rates low for an "extended period". [nFEDAHEAD].

Persistent weakness in the dollar had spurred fund buying
of gold, which sent cash and futures to record highs last
month. Gold is seen as a hedge against both inflation and a
depreciating dollar.

The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust (GLD: Quote, Profile, Research), said its holdings stood at 1,103.519 tonnes
as of Nov. 2, unchanged from the previous business day.
[GOL/SPDR]
PRICES
Precious metals prices at 0304 GMT
Metal Last Change Pct chg Day ago pct MA 30
RSI Spot gold $1064.70 $5.55 +0.52% +18.70% $860.10
60
Spot silver $16.61 $0.18 +1.10% +38.65% $11.29
44
Spot plat $1348.50 $14.50 +1.09% +1.97% $1331.29
52
COMEX gold $1065.60 $5.70 +0.54% +1.97% $1037.86
60
Currencies
Euro/dlr $1.480 $0.003 +0.19% +0.55%
Dlr/yen 90.31 -0.02 -0.02% +0.76%
(Additional reporting by Bruce Hextall in SYDNEY; Editing by
Michael Urquhart)