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 average price in 2012

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

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

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

The International Monetary Fund's financial counsellor said on Wednesday that the fund was encouraged by Spain's attempts to reduce its budget deficit, dashing hopes that Madrid would soon apply for aid.

Jose Vinals, director of the IMF's monetary and capital markets department, added that the decision to take up the European Central Bank's recently-announced bond-buying plan lay with the Spanish authorities.

The IMF cut its global growth forecast for 2012 to 3.3 percent from an earlier estimate of 3.5 percent and predicted a contraction 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 movements in the absence of any further information about Spain's bailout and the global economy.

"Bearing in mind where the dollar is, it wouldn't be a surprise to see more weakness before moving higher, but generally 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 hands trying to take a good reading of broadly what is going on. For investors to re-immerse themselves massively behind the current gold price, they are looking for clarity about where the economy is really going."

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

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


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

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

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

Platinum fell on Tuesday as hopes were raised that industrial unrest in South Africa, home to the largest platinum reserves, was abating. The rand firmed against the dollar after striking 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 a 1.8 percent decline in vehicle sales in September versus the year earlier period, the China Association of Automobile Manufacturers (CAAM) said on Wednesday.

Spot prices for the metal, which is used in the catalytic converters, 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 Rujun Shen in Singapore; Editing by Robin Pomeroy and Veronica Brown)

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