* Ireland requests aid; peripheral worries remain

 * Euro sheds early gains versus dollar 

 * Holdings of silver in largest silver ETF hit record

 (Updates prices, adds comment)

 By Amanda Cooper

 LONDON, Nov 22 (Reuters) - Gold fell on Monday, as optimism
over Ireland's request for financial aid was overtaken by
concern about possible contagion to other euro zone nations to
weigh on the euro.
The pick-up in the dollar undermined demand from investors
for perceived safe-haven assets such as gold, which tends to
struggle if the U.S. currency strengthens. [FRX/]
 EU officials said Ireland may receive the first tranche of
an emergency bailout in January and its debt problems are
unlikely to spread to other euro zone nations, although
Ireland's Green Party pulled the plug on the unpopular coalition
government by calling for a national election. [ID:nLDE6AL00M]
 Back in May, when the problems surrounding the euro zone's
debt burden became apparent, gold's traditional link to the U.S.
dollar broke down as investors sought an alternative to the
euro, although the same phenomenon has not materialized with
this recent resurgence of concern over Europe's finances.
 "(Gold has) come down a bit on the Irish news, the euro has
come down. It's not really huge moves, it's because traders are
uncertain whether the bailout will be a success," said Matthew
Turner, an analyst with Mitsubishi.
 "There are two things -- will the bailout be a success and


how will gold prices react if it is ... It could go either way."
Spot gold XAU= traded at $1,352.50 an ounce by 1554 GMT,
having earlier risen by as much as 0.77 percent to a session
high of $1,364.55. U.S. gold futures for December delivery
GCZ0 were down 40 cents at $1,351.9.
 Risk aversion alone does not always drive investors into
precious metals, especially if the broader commodities complex
comes under pressure, sweeping bullion lower in the process, as
has been the case in the last three weeks. .CRB
 Holdings of gold in the world's largest exchange-traded fund
rose for the first time in two weeks, indicating investors were
delving back into precious metals, albeit cautiously. [GOL/SPDR]
 While holdings of metal in ETFs rose last week, speculators
cut their holdings of gold futures, according to data from the
U.S. Commodity Futures Trading Commission last week.
 Total open interest in gold futures held by non-commercial
players, which many in the market use as a gauge of speculative
activity, staged its largest weekly fall since late July and has
fallen in five out of the past six weeks.
 "Much of the short-term froth is now dissolved -
particularly from the gold market - but that doesn't mean the
stage is set for a re-run of fresh highs," said UBS precious


metals strategist Edel Tully.
"With Thanksgiving approaching, U.S. investors in particular
may be inclined to reduce risk positions over the holiday
period," she added.
 Meanwhile, China's steps to rein in inflation could dim
gold's appeal in the world's second-largest consumer after
India, but a drop in bullion prices from all-time high levels
were attracting purchases from other consumers in Asia, local
dealers said. 
 Reflecting the concern among some investors about the rise
in the gold price against a backdrop of an improving global
economy, HSBC Global Asset Management said late last week it had
cut its gold allocation in its Absolute Return Fund in half.
"We have ... taken the prudent course of action and halved
our position in gold bullion to 6 percent to reflect the fact
that we remain bullish over the long term but acknowledge that
gold has run ahead of itself at a time when the diversification
benefits have become less obvious," wrote HSBC fund manager
Charlie Morris in a note to clients.
 Silver XAG= rose by 0.3 percent, rallying for a fourth
successive day, after holdings of metal in the world's largest
silver-backed ETF hit another record high. 
 Spot silver was last up at $27.29 an ounce, from $27.21 in
late trade in New York on Friday, having risen by nearly 9


percent in the last five trading days. 

 * Gold ticks up on euro strength              	

 * Gold seen rangebound, seeks direction[ID:nSGE6AL013]	

 * Coming Up: U.S. Chicago Fed index Oct; 1300 GMT	

 	
 (Updates prices)	

 By Lewa Pardomuan	

 SINGAPORE, Nov 22 (Reuters) - Gold ticked higher on Monday 
as the euro gained after Ireland's rescue deal, helping the 
metal resist pressure from China's move to tighten its economy.	China's steps to rein in inflation could dim gold's appeal 

 SINGAPORE, Nov 18 (Reuters) - Spot gold gained by nearly 
half a percent on Thursday, after falling for four consecutive 	
session, as tame U.S. inflation data pushed the dollar off its 	
rally, supporting bullion.	

 FUNDAMENTALS    	

 * Spot gold rose by half a percent to $1,342.75 an 	
ounce by 0035 GMT.	

 * U.S. gold futures gained 0.4 percent to $1,342.	

 * The rally that drove the dollar to seven-week highs 
fizzled early in Asia on Thursday after subdued U.S. inflation 
data bolstered the Federal Reserve's case for pumping more stimulus into the economy. 
 * U.S. core consumer inflation touched a record low in 	
October and new home building sagged, lending support to the 	
Federal Reserve's move to boost the sluggish economy through 	
additional monetary easing.       	
 * Ireland agreed on Wednesday to work with a European 	
Union-IMF mission on urgent steps to shore up its shattered 	
banking sector, a process that could lead to a bailout despite 	
Dublin's deep reluctance. 	
 * Silver is likely to rise above $30 an ounce and average 
$28 in 2011, lifted by strong investment buying and recovering 	
fabrication demand, precious metals research and consulting 
firm GFMS said on Wednesday.
 * Spot silver climbed nearly one percent to $25.86 
an 	
ounce.	
 MARKET NEWS    	
 * Investors were unable to recoup recent losses in the 
market on Wednesday, suggesting the struggles recently 
experienced by stocks are far from over. 
  RELATED NEWS    	

> EU/IMF team heads to Ireland to explore steps     
 	
> Wall Street ends flat, late selloff in banks      
 
> US inflation subdued, housing starts tumble        	
> Federal Reserve officials see need for full QE2   
 	
> US mortgage applications hit 4-month low - MBA    
 	
> EU denies delaying aid payment to Greece          
 	
> Oil drops to 4-week low on China rate worries     
 	
> ECB's Mersch-Euro will survive, warns on low 
rates 	
> BoE split 3 ways in Nov, majority still on fence  
 	
> China vows to tame inflation, price controls eyed 
 	
> UK claimant count falls unexpectedly in Oct       
 	
> NZ economic recovery to pick up pace in '11 
	
> GM IPO raises $20.1 bln, biggest US IPO ever     

PRICES    	

 Precious metals prices at 0035 GMT	
 Metal             Last    Change  Pct chg  YTD pct chg Turnover	
 Spot Gold        1342.75    7.05   +0.53     22.55             
 	
 Spot Silver        25.86    0.25   +0.98     53.65             
 	
 Spot Platinum    1639.24    5.75   +0.35     11.74             
 	
 Spot Palladium    664.47    4.22   +0.64     63.86             
 	
 TOCOM Gold       3603.00   -1.00   -0.03     10.56        
20153 	
 TOCOM Platinum   4434.00    5.00   +0.11      1.21         
5113 	
 TOCOM Silver       69.40    0.90   +1.31     34.24          
839 	
 TOCOM Palladium  1784.00   70.00   +4.08     53.13          
590 	
 Euro/Dollar       1.3551