By Ray Brindal Of DOW JONES NEWSWIRES CANBERRA (Dow Jones)--Spot gold drifted lower Tuesday in Asia, unable to hold the tidy gain posted Monday after U.S. Federal Reserve Chairman Ben Bernanke reiterated his support for the central bank's accommodative monetary policies. The demand surge that resulted from Bernanke's comments and the short covering that kicked in as gold surpassed a technical level at $1,670 pushed the metal to an intraday high of $1,693.50 late Monday, but gold drifted lower on light selling Tuesday, a Sydney-based trader said. At 0515 GMT, spot gold traded at $1,688.40/oz in Asia, down $1.50 from its previous settlement, after touching an intraday low of $1,686.00. Tocom's most active February 2013 gold futures contract was up Y84 at Y4,512/gram. For now, gold is "still at the mercy of the USD," the Sydney trader said, adding that he suspects there could be a small pullback from current levels, though he couldn't rule out a push higher if the price can hold above a 200-day moving average at $1,687. By that same technical token, Barclays said its suspicion of a bullish turn in gold was confirmed with the break above $1,670. "We now look for a move toward $1,710 and then $1,760," it said in daily note. Meanwhile, AngloGold Ashanti Ltd. (AU) Chief Executive Mark Cutifani said the price of gold could exceed $2,000/oz this year because demand remains robust in fast-growing economies like India and China. It will likely will average $1,700-$1,800/oz in 2012, he said. "With the increasing middle class in China, many Chinese are choosing gold as a way to store wealth, so I don't think that will change," he said. Demand for gold jewelry in India remains "relatively strong," though it has weakened slightly recently due to talk of higher taxes on gold imports, he said. Spot silver was at $32.74/oz, down 10 cents on the day, while spot platinum rose $3 to $1,648/oz but spot palladium fell $2 at $665. -By Ray Brindal, Dow Jones Newswires; 612 62080902; ray.brindal@dowjones.com

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