* Markets disappointed by lack of firm ECB, Fed actions
* Supported by South Korea boosting gold reserves by 16 T
* India demand could weaken further on lack of monsoon rain
(New details throughout, updates comment, changes byline,
dateline, previously LONDON)
By Frank Tang
NEW YORK, Aug 2 (Reuters) - Gold prices fell for a fourth
straight session on Thursday as bullion investors continued to
unwind bullish bets due to a lack of more aggressive actions by
the European Central Bank and U.S. Federal Reserve to boost
growth.
ECB President Mario Draghi said any government bond buying
would not come before September - and only if governments
activated the euro zone's bailout funds to join the ECB in
buying bonds.
Gold fell in tandem with losses on Wall Street and U.S.
crude futures, as markets across the board looking for monetary
stimulus were less than impressed. Just last week, Draghi said
the ECB would do whatever it takes to preserve the euro.
The bullion market was already under pressure a day after
the Federal Reserve issued a policy statement that dashed
investor hopes for new monetary stimulus, even though it
acknowledged that the U.S. economy has lost momentum.
"It appears that central banks now need more economic data
for them to come out with more aggressive actions, and that's
disappointing for gold investors," said Phillip Streible, senior
commodities broker at futures brokerage R.J. O'Brien.
"But the downside on all these precious metals markets are
limited as there is a stimulus-put built onto prices," said
Streible, referring to lingering hopes for easing if economic
conditions worsen.
Spot gold fell 0.8 percent to $1,585.75 an ounce by
2:29 p.m. EDT (1829 GMT), having earlier hit a one-week low of
$1,587.80.
U.S. COMEX gold futures for December delivery settled
down $16.60 an ounce at $1,590.70, with trading volume around 10
percent below 30-day average, preliminary Reuters data showed.
SOUTH KOREA BUYS GOLD
South Korea said late on Tuesday that it bought 16 tonnes of
gold in July, its second purchase this year. It is one of a
number of countries, mostly in Asia and emerging markets, to
have built reserves recently.
UBS said in a note that central-bank activity is in part
filling in for the tame retail physical-buying from top bullion
consumer India by inserting a price floor to gold's downside.
Physical buying from India remains weak, and farmers there
are likely to have less discretionary income to buy gold after
weather forecast predicted the country's monsoon rains will be
deficient in 2012.
Among other precious metals, silver fell 1.1 percent
to $27.09 an ounce, while platinum was down 2 percent at
$1,380.24 an ounce and palladium dropped 3.4 percent to
$566.75 an ounce.
2:29 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold DEC 1590.70 -16.60 -1.0 1586.30 1618.80 144,458
US Silver SEP 26.995 -0.540 -2.0 26.880 27.780 41,068
US Plat OCT 1387.80 -13.50 -1.0 1382.70 1415.40 6,959
US Pall SEP 567.85 -14.75 -2.5 562.35 589.10 2,605
Gold 1585.75 -12.84 -0.8 1585.45 1614.29
Silver 27.090 -0.310 -1.1 27.010 27.800
Platinum 1380.24 -28.66 -2.0 1386.25 1402.25
Palladium 566.75 -19.88 -3.4 569.75 585.25
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 155,763 171,814 193,042 18.89 -0.95
US Silver 47,154 52,119 57,575 30.08 1.55
US Platinum 7,146 9,723 8,969 23 0.00
US Palladium 2,773 3,198 4,357
(Additional reporting by Jan Harvey in London; Editing by
Marguerita Choy)