PRECIOUS-Gold retreats with euro, mounting concern on growth

(Adds analyst quotes, Reuters poll, updates prices)

* Gold dips with euro; retreats from 11-month high

* Reuters analyst poll sees gold hitting record averageprice in 2012

* Palladium suffers as China monthly auto sales weaken By Clare Hutchison

LONDON, Oct 10 (Reuters) - Gold fell on Wednesday, poisedfor its first four-day losing streak since August, taking a cuefrom euro weakness as fear mounted on peripheral euro zoneeconomies along with wider concern about the global economy.

Investors clung to the dollar, which held near a one-monthhigh against a basket of currencies, with growing anxiety on thelack of a clear timetable for a Spanish bailout.

The International Monetary Fund's financial counsellor saidon Wednesday that the fund was encouraged by Spain's attempts toreduce its budget deficit, dashing hopes that Madrid would soonapply for aid.

Jose Vinals, director of the IMF's monetary and capitalmarkets department, added that the decision to take up theEuropean Central Bank's recently-announced bond-buying plan laywith the Spanish authorities.

The IMF cut its global growth forecast for 2012 to 3.3percent from an earlier estimate of 3.5 percent and predicted acontraction in the euro zone of 0.4 percent.

Spot gold , usually pressured by a stronger greenback,traded 0.2 percent lower at $1,761.16 per ounce by 1419 GMT,close to a 10-day low. U.S. gold futures were lower at$1,761.80.

Analysts said gold prices were following currency movementsin the absence of any further information about Spain's bailoutand the global economy.

"Bearing in mind where the dollar is, it wouldn't be asurprise to see more weakness before moving higher, butgenerally speaking the market has moved back into the doldrums,"Ross Norman, chief executive of bullion dealer Sharps Pixley,said.

"The markets are light and people are sitting on their handstrying to take a good reading of broadly what is going on. Forinvestors to re-immerse themselves massively behind the currentgold price, they are looking for clarity about where the economyis really going."

HSBC said in a note to clients that with the marketstumbling in sight of $1,800 an ounce, prices could slip back to$1,750.

"The long-running rally is intact, however, and we expectthat gold prices will revive after a period of consolidation,"the bank added.


A Reuters poll of 27 analysts released Wednesday showedanalysts remain bullish on bullion in the long term. Analystsunanimously forecast a record high average price of $1,690.00 anounce in 2012, up a touch from an estimate of $1,685.00 at theend of the second quarter and $1,765 suggested in January.

Analysts expect the metal to book a thirteenth successiveyear of gains in 2013, reaching an average price of $1,853.75.

Purchases of exchange-traded products (ETPs) reflectedinvestors' positive outlook for bullion in the long term.Bullion backed ETPs took in approximately 270,000 ounces of goldon Oct 9, taking total holdings to a record high of 74.76million ounces.

Platinum fell on Tuesday as hopes were raised thatindustrial unrest in South Africa, home to the largest platinumreserves, was abating. The rand firmed against the dollar afterstriking truckers agreed to return to work.

Spot platinum was down 0.8 percent on the day at$1,6676.20 per ounce.

Palladium also fell after data from China showed a1.8 percent decline in vehicle sales in September versus theyear earlier period, the China Association of AutomobileManufacturers (CAAM) said on Wednesday.

Spot prices for the metal, which is used in the catalyticconverters, dropped 0.5 percent to $648.00.

Silver rose 0.2 percent to $33.91 per ounce.

(Reporting by Clare Hutchison and Amanda Cooper in London RujunShen in Singapore; Editing by Robin Pomeroy and Veronica Brown)

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