MARKET BUZZ FOR GOLD - ASIA MORNING

Gold fell to its lowest price in more than a week Wednesday ASIA MORNING under pressure from a rising U.S. dollar after the Federal Reserve left interest rates on hold but left the door open for future rate hikes.

Gold, traditionally traded as a dollar hedge, fell nearly $11 or 1.7% from its New York close overnight to $635.45 a troy ounce in early Asian hours, its lowest since Aug. 1, before recovering to $638.45 by 0200 GMT.

Traders attributed the losses to currency- and technically-inspired selling in low volumes, exacerbated by a break through key support at $637.50.

Other participants said a downturn in oil prices overnight also reduced gold's appeal as an inflation fighter.

Todays Asia Morning selling was a Technical Correction for Opening the Gap and Aswell for few traders as profit-taking on the belief lower levels will offer buying opportunities in an ongoing uptrend driven by longer term dollar concerns, still high oil prices and Mideast tensions.

For now, traders expect conditions to stay thin and volatile with little to indicate the market's next move.