October 31, 2017 / 2:46 PM / a year ago

PRECIOUS-Gold falls as dollar recovers, Fed chair in focus

    * Dollar brushes off fresh White House turmoil
    * Spot gold on track for second monthly decline
    * GRAPHIC-2017 asset returns: tmsnrt.rs/2jvdmXl

 (Recasts, updates prices)
    By Maytaal Angel
    LONDON, Oct 31 (Reuters) - Gold slipped on Tuesday as the
dollar recovered and precious metals investors turned cautious
ahead of central bank meetings this week, U.S. payrolls data and
the announcement of who will be the next Federal Reserve chair.
    Spot gold        slipped by 0.5 percent to $1,269.69 an
ounce by 1424 GMT, on course to finish October with a second
straight monthly decline. 
    U.S. gold futures         for December delivery dipped 0.6
percent to $1,270.40. 
    The dollar brushed off Monday's news that investigators had
charged U.S. President Donald Trump's former campaign manager
Paul Manafort, resuming the upward trend that has helped it
towards its best month since February.       
    The U.S. Federal Reserve will begin a two-day policy meeting
later this session, with speculation mounting that President
Trump will pick Fed Governor Jerome Powell as the next head of
the U.S. central bank on Thursday.              
    Powell is seen as more dovish than other contenders for the
post, such as Stanford University economist John Taylor.
    "With Powell being a dove, it kind of keeps the status quo,
so we still see the dollar going higher from here, but in a
gradual fashion. That's likely to be a source of modest downward
pressure for gold," said Martin Arnold, commodity strategist at
ETF Securities.    
    A strong U.S. currency makes dollar-priced gold more
expensive for holders of other currencies.
    Global equities, meanwhile, were heading for a record 12th
month of gains as a 5-1/2 month high in European stocks and
records elsewhere underscored one of the most robust bull
markets on record. 
    Rising equity markets usually indicate confidence in
economic growth, which reduces gold's appeal as a safe-haven
    Elsewhere, continuing political unrest in Catalonia was also
in focus for gold, along with U.S. payrolls data on Friday and a
Bank of England policy meeting on Thursday.
    "The market is catching its breath for what will be a very
data-heavy second half of the week," said Jeffrey Halley, a
senior market analyst with OANDA.
    "Gold itself appears to have lost any risk-aversion premium
for now and is thus completely at the mercy of the nuances of
the U.S. bond and stock market, and by default the U.S. dollar."
    Among other precious metals, silver        fell 0.8 percent
to $16.69, platinum        dipped 0.5 percent to $916.40 and
palladium        climbed 1.5 percent to $978.50.    
    South Africa's Impala Platinum          said on Tuesday that
first-quarter platinum production fell 6.6 percent due to a
stock build-up after scheduled furnace maintenance at its Impala
and Zimplats operations.             

 (Additional reporting by Vijaykumar Vedala in Bengaluru;
Editing by Louise Heavens and David Goodman)
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