The following are New York midsession prices and market updates for precious metals and copper: GOLD * Gold for February delivery drops $14.70, or 1.6 percent, to $884.80 an ounce at 12:03 p.m. EST (1703 GMT) on the COMEX division of the New York Mercantile Exchange. * Ranged $882.40 to $903.40, near a 3-1/2-month high. * Pullback to continue as rebalancing after option expiration, upcoming first notice day of February contracts, better tone of the overall stock market - dealer. * Volatility in gold futures market usually rises near option expirations and contract rollovers. The first notice day of the February contract is Friday, Jan 30, when April futures will become the most active contract. * Flight to quality buying ebbed as the Dow Jones industrial average on track to its best 3-day winning streak in nearly a month. [.N] * Gold pressured by possible positive news from the Davos World Economic Forum and U.S. Federal Reserve's interest rate meeting, both could fuel speculation that the economy is alive and well - analyst. * The Fed rate decision and its accompanying policy statement later on Wednesday, particularly on details to take over toxic banking assets, will be closely watched. * Market expected the Fed to keep its rate unchanged at 0.2 percent. * Gold market sentiment still bullish as the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , commonly known as GLD, said its bullion holdings held steady at record 832.88 tonnes as of Jan. 27. * COMEX estimated 11:00 a.m. volume at 139,574 lots, and options turnover at 7,280 lots. * Spot gold was at $885.50 an ounce, down 1.3 percent from the last trade on Tuesday. * London afternoon gold fix at $891.25 an ounce. SILVER * March falls 16.5 cents, or 1.2 percent, to $12.010 an ounce on the back of gold's weakness and as investors took a breather after recent rally. * Ranged $11.815 to $12.165. * COMEX estimated silver 11:00 a.m. volume at 9,106 lots. * Spot silver quoted at $11.98 an ounce, down 0.3 percent from its previous session close. * Silver fixed in London at $11.98 an ounce. PLATINUM * NYMEX April platinum turns higher, up $8.30 to $966.50 an ounce as worries about autocatalyst demand ease following a stock market rally. * Spot platinum quoted at $957.50 an ounce, down 1.3 percent from its last finish. PALLADIUM * NYMEX March palladium edges up 95 cents to $191.95 an ounce in mixed trade, following platinum's gains. * Spot palladium quoted at $189.00 an ounce, down 0.3 percent from its previous close on Tuesday. COPPER * COMEX copper for March delivery up 1.60 cents to $1.5005 a lb by the midday point. * The session ranged from $1.4720 to $1.5535. * On Monday, benchmark March contract hit its highest level since Dec. 2 at $1.6310. * Copper up in tandem with a rallying equity markets as investors grow optimistic that the Obama administration will work quickly on a plan to mop up toxic assets from banks. [.N] * Commodities still transfixed by the broader macro picture where things look dire in terms of overall demand - MF Global metals analyst Edward Meir. * A Reuters survey of 57 base metals analysts showed that a worsening global recession is expected to slash copper prices by 50 percent this year as slowing economic activity hits demand. [ID:nSP405840] * Surpluses in copper and aluminum expected to surge in 2009 as industrial activity slows and as demand falls faster than production cutbacks. [ID:nSP228160] * London Metal Exchange warehouse stocks added another 3,125 tonnes to bring total warehouse levels to their highest since December 2003 at 454,925 tonnes. * COMEX copper stocks increased 325 to 39,934 short tons as of Tuesday. * London Metal Exchange copper for three months settled at $3,330 a tonne, up $20 from Tuesday when prices plunged more than 9 percent.

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