* Resurfacing euro zone concerns support safe have buying
* Spot gold may fall below $1,704 -technicals
* Coming up: U.S. ISM manufacturing PMI, October  1400 GMT

    By Rujun Shen	

    SINGAPORE, Nov 1 (Reuters) - Spot gold was steady on
Tuesday, supported by safe-haven demand on resurfacing
uncertainty over the euro zone's efforts to resolve its debt
crisis, while a strong dollar weighed down prices.	
    Italian and Spanish bond yields soared ahead of a key Group
of 20 meeting that would likely press European leaders on
details of how to tackle the crisis.  	
    The dollar also surged nearly 1 percent against a basket of
currencies , a day after Japan's massive intervention
pushed the dollar index up 1.5 percent. 	
    " The European problems will resurface through the end of the
year,"  said Dominic Schnider, head of commodity research at UBS
Wealth Management in Singapore, expecting safe-haven demand to
help prices revisit a record high of above $1,920 by year-end.	
    But recent gains in commodities, cause by bursts of
optimisim over Europe, may be wiped out if the crisis is not
resolved soon, Schnider added.	
    Spot gold was little changed at $1,714.54 an ounce by
0701 GMT, after staging a monthly rise of 5.5 percent in
October.	
    U.S. gold GCcv1 lost half a percent to $1,716.50.	
    Technical analysis suggested that spot gold could retrace to
below $1,704 during the day, said Reuters market analyst Wang
Tao. 	
    Adding to the worries about euro zone, Greece's prime
minister called a referendum on the latest bailout deal.
 	
    	
     The fallout from the collapse of MF Global Holdings Ltd
 rippled through global exchanges on Tuesday, as operators
moved to suspend the U.S. futures broker or limit trades of its
customers.  	
     The weaker-than-expected China official purchasing managers
index for October increased the gloom on the global economic
outlook, but it also reinforced the expectation that China's
central bank could soon start to loosen up its monetary
policy. 	
    Physical market activities were muted, and premiums in Hong
Kong eased to near $1 an ounce over spot prices, from $1-$1.50
last week.	
    " Jewellery sector demand has been quiet as jewellers are
unwilling to keep much of an inventory,"  said Dick Poon, manager
of precious metals of Heraeus in Hong Kong.	
    " They are worried about consumption in Europe and the United
States in Christmas holiday season, with the economic
uncertainty looming large." 	
    Physical buying slowed to a trickle after prices recovered
to above $1,700 last week, from an October trough of $1,603.49
on Oct 20, dealers said.	

* Gold slides as dollar gains from BOJ's yen selling
* Near-term outlook dominated by macro picture
* Coming up: U.S. manufacturing data on Tuesday

    By Chris Kelly

    NEW YORK, Oct 31 (Reuters) - Gold lost nearly 1 percent in
thinner-than-usual trade on Monday, after Japan's intervention
to weaken the yen sent the dollar soaring and commodities and
other risk assets into a tailspin at the start of the week.
    Currency-led selling pulled bullion down for a second
straight day, extending a phase of consolidation from last
week's short-covering surge that had lifted the price to its
highest in more than a month, above $1,750 an ounce.
    Despite the loss, gold posted a 6 percent gain for this
month, recovering from a near-11 percent slide in September,
when prices hit a record $1,920.30.
    " The movements in the dollar ... you have to chalk that up
as the number-one negative for commodities in general on the
day,"  said Bill O'Neill, partner of LOGIC Advisors in Upper
Saddle River, New Jersey.
    " It's more of a risk-off day ... gold has become a very
choppy, volatile trading affair, which makes it a little less
attractive as a flight-to-safety vehicle,"  he said.
    Bullion slipped as the greenback jumped to a three-month
high against the yen after the government of Japan intervened
to curb the yen's strength, making dollar-priced commodities
more expensive for investors holding other currencies.
    Helping gold recover some of the day's losses was a
decision by the New York Federal Reserve to suspend conducting
business with brokerage MF Global , which filed for
bankruptcy protection after a tentative deal to find a buyer
fell apart.
    Spot gold was down 1.1 percent at $1,722.65 an ounce
at 2:46 p.m. EDT (1846 GMT).
    In New York, the benchmark December COMEX contract 
shed $22 or about 1.3 percent, to settle at $1,725.20 an ounce,
after dealing in a range from $1,705.50 to $1,746.50.
    Futures volumes stood at around 118,000 lots in late New
York trade, about 40 percent below the 30-day norm, according
to Thomson Reuters preliminary data.
    " MF Global was not a big surprise. Clearly it's not a bank,
it's not on the scale of Lehman Brothers, but that is what
helped the (gold) market to bounce off today's lows,"  VTB
Capital analyst Andrey Kryuchenkov said.
    Looking ahead, investors will turn their attention to a
batch of economic data and central bank policy meetings, which
may give the market a better sense of direction.
    " This week, it's all about the economic data and central
bank policy meetings,"  said Mitsubishi analyst Matthew Turner.
    " There's no real sense of direction, except for the fact
that it is trading more like a risk asset." 
    The U.S. Federal Reserve and the European Central Bank meet
this week to discuss monetary policy, while the Group of 20
industrialized nations meet in the French city of Cannes to
devise a plan to stabilize markets.
    The correlation between gold and the European equity market rose to a multi-month high of nearly 50 percent,
meaning gold was more likely to move in tandem with stocks,
while gold's negative correlation to the dollar strengthened to
-40 percent on Monday from around -30 percent last week.BUYERS CAUTIOUS
    Buyers in the physical market were on the sidelines, which
led to gold bar premiums easing to a range between $1 and $1.50
an ounce over spot prices, from about $1.50 last week.
    " We saw some light buying from Thailand,"  said a
Singapore-based dealer. " If prices drop below $1,700, physical
buyers are expected to return." 
    Investment interest in gold has been rekindled in recent
weeks after euro zone leaders progressed toward an agreement to
solve the region's debt crisis, albeit painstakingly, which
pushed up the euro and as a result, helped send the gold price
up 6 percent last week.
    Last week, money managers raised their bullish bets in gold
futures and options to the highest in four weeks, according to
data from the U.S. Commodity Futures Trading Commission.
    In exchange-traded fund flows, global holdings of gold
ended last week with a 543,000-ounce inflow, the largest weekly
increase since the week ending Aug. 19.
    So far in October, global gold ETF holdings have risen by
more than 714,000 ounces to their highest in five weeks at
67.769 million ounces. This would be the first monthly rise in
holdings since July.
    In other precious metals, platinum was last down
over 2 percent at $1,607.75, while palladium was down at
$648.72 and silver shed more than 2 percent to $34.22 an
ounce.

* Japan intervenes in currency market, spurs dollar rally
* Physical gold buyers on sidelines
* Spot gold upside capped in $1,762-$1,773 range-technicals
* Coming up: U.S. Chicago PMI, October  1345 GMT

	
    By Rujun Shen	

    SINGAPORE, Oct 31 (Reuters) - Spot gold prices dropped
nearly 2 percent on Monday, after Japan's intervention in the
currency market triggered a spike in the dollar, spooking
precious metals investors and setting bullion up for its biggest
one-day drop in four weeks.	
    Japan intervened unilaterally in the foreign exchange market
on Monday to curb the yen's strength, sending the dollar up more
than 1 percent against a basket of currencies. 
 	
    A stronger greenback makes dollar-denominated commodities
more expensive for buyers holding other currencies.	
    " The huge spike in the dollar is pressuring gold prices," 
said Ong Yi Ling, an analyst at Phillip Futures. " But so long as
gold stays above $1,700, the sentiment should remain pretty
bullish." 	
    The most-active U.S. gold futures contract GCcv1 dropped
as much as 2.3 percent to $1,707.7 an ounce, and recovered
slightly to $1,711.10 by 0622 GMT. It was headed for a monthly
rise of 5.4 percent.	
    Spot gold fell nearly 2 percent to $1,705.89 earlier
and regained some lost ground to $1,709.29. It was on course for
its biggest one-day drop in four weeks, but was still headed for
a monthly rise of more than 5 percent.	
    Technical analysis suggested the upside of spot gold will be
capped in a resistance range of $1,762-$1,773 per ounce, said
Reuters market analyst Wang Tao. 	
    	
    Buyers in the physical market were on the sidelines, which
led to gold bar premiums easing to a range between $1 to $1.50
an ounce over spot prices, from about $1.50 last week.	
    " We saw some light buying from Thailand,"  said a
Singapore-based dealer. " If prices drop below $1,700 physical
buyers are expected to return." 	
    Investment interest in gold was rekindled in recent weeks
after euro zone leaders progressed towards an agreement to solve
the bloc's debt crisis, albeit painstakingly, sending prices up
6 percent last week.	
    Last week, money managers raised their bullish bets in gold
futures and options to the highest in four weeks, data from the
U.S. Commodity Futures Trading Commission data showed.
 	
    SPDR Gold Trust , the world's largest gold-backed
exchange-traded fund, registered an inflow of 16.04 tonnes on
the week and 11.62 tonnes from the end of September, after a
small outflow of 0.38 tonnes in September. 	
    Other precious metals weakened in tandem. Spot silver 
dropped as much as 3.2 percent to $34.12, and the most-active
U.S. silver futures contract SIcv1 lost 2.8 percent to $34.30.	
    Spot platinum suffered its worst one-day loss in a
month with a 3-percent slide. Spot palladium fell 3.3
percent to $642.22.	
    In the days ahead, investors will be watching a policy
meeting of the U.S. Federal Reserve, as well as a key Group of
20 meeting for coordinated efforts or pledges to help stabilise
world financial markets.