Gold slipped about 1 percent on Friday after the US Federal Reserve hiked its discount lending rate to banks, sending the dollar up and weakening the appeal of bullion as an alternative investment. The dollar leapt and the euro hit a nine-month low after the Fed said it was raising the interest rate it charges banks for emergency loans, signalling it was starting to normalise monetary policy. "Overnight, we've seen a knee-jerk reaction to the Fed news, like yesterday with the IMF news," said James Moore analyst at The BullionDesk.com. "Given the background concerns still going on surrounding currencies, sovereign debt problems ... the flows towards gold shouldn't be that affected. The IMF said on Thursday, it will soon begin phased sales of 191.3 tonnes of gold to the open market, a move that has called into question demand for bullion from official sector buyers. "We've picked up some good support over the last few weeks," added Moore. "For now we've got a little bit of choppy sideways trade to go, but given what is going on in the broader (economic) picture, there is a lot of demand going into gold." PRICES * Spot gold was at $1 103.60 at 09:58 SA time compared with $1 111.40 late in New York on Thursday. * Silver was at $15.79 from $15.84. * Platinum at $1 502 from $1 514.00. * Palladium at $425.50 from $429.50. DATA/EVENTS * US CPI/Core CPI for January at 15:30 SA time. * US real earnings for January at 15:30 SA time. * US ECRI weekly data at 17:30 SA time. MARKET NEWS * The US dollar rose broadly, commodity prices dropped and stocks fell after the Federal Reserve stunned markets by lifting an emergency lending rate for the first time since the financial crisis. * The dollar leapt and the euro hit a nine-month low after the Federal Reserve said it was raising the interest rate it charges banks for emergency loans, signalling it was starting to normalise monetary policy. * Oil fell more than $1 to below $78 a barrel, pushed by the stronger dollar after the Fed move and damped by higher-than-expected crude inventories in the United States. * US stocks rose for a third straight day on Thursday as investors viewed company results and manufacturing data as evidence the economic rebound will continue. FUNDAMENTALS * Barrick Gold Corp will spin off its African gold assets into a new London-listed company in the hopes of uncorking added value, and will use the proceeds to fund its growing stable of high-cost mega-mines, the company said on Thursday. * A strike at three units of the Peruvian precious metals miner Buenaventura should end early next week, the company said on Thursday, as the work stoppage dragged into its sixth day. * The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1 109.424 tonnes by February 18, unchanged from the previous business day. TECHNICALS * Gold support at $1 098 resistance at $1 127 RSI 14 at 51.7. * Silver support $15.68 resistance $16.27 RSI 14 at 45.7. * Platinum support $1 503 resistance $1 555 RSI 14 at 41.7. - Reuters

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