DJ Spot Gold Slips Below Key Support At $850/Oz As Dlr Rebounds

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LONDON, May 01, 2008 (Dow Jones Commodities News via Comtex) -- -- Spot gold slipped below key support at $850 a troy ounce to a four-month low Thursday with further losses expected as the dollar rebound gathers pace, said market participants.

As of 1435 GMT, spot gold traded at $848.65/troy ounce down over 2.5% from Wednesday's PM Fix in London.

The dollar hit a month-high against the euro after U.S. consumer spending in March picked up, more than doubling analyst expectations.

Traders noted a lack of buying coming in to support the gold market, with much of Europe out for May Day celebrations, following holidays in China and Hong Kong overnight.

-By Melanie Burton, Dow Jones Newswires; +44 (0)20 7842 9412; melanie.burton@dowjones.com

(END) Dow Jones Newswires

05-01-08 1042ET

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