Gold fell further on Monday but could attract bargain hunters after posting its worst closing since June in the previous session as the dollar rallied against the euro on growing doubts about Europe's ability to resolve its debt crisis.

FUNDAMENTALS

* Spot gold eased $4.21 to $1,852.95 an ounce by 0018 GMT, well below a lifetime high around $1,920 struck last week.

* U.S. gold GCcv1 fell $3.3 to $1,856.2 an ounce. * Greece on Sunday slapped a new tax on real estate to plug a 2011 budget hole, please international lenders and secure a key new loan tranche as concerns mounted in Europe over its euro zone membership.

* Gold demand, which dropped in the second quarter of this year, is expected to strengthen by the end of 2011, driven by robust jewellery buying in India and China and recovery in investment demand, senior World Gold Council (WGC) officials said.

* Silver, bronze, ebony and plastics are seeing greater use in jewellery as surging gold prices put off price-conscious consumers, jewellery makers at an international trade fair said.

* For the top stories on metals and other news, click , or MARKET NEWS * The Nikkei fell on Monday after Wall Street tumbled on a European Central Bank board member's resignation and the bank's monetary policy shift to a neutral bias.

* Oil fell by about $1 on Monday with a stronger dollar as investors shunned commodity risk because of Europe's deepening sovereign debt crisis, while economic gloom dampened the outlook
for energy use. * The euro got off to a rocky start in Asia, falling to fresh six-month lows against the greenback and a 10-year trough on the yen as downside momentum picked up pace after several key technical levels gave way recently.

 DATA/EVENTS

0530 India Industrial Output y/y Jul 2011 0800 Italy Industrial output yy WDA Jul 2011

Precious metals prices 0018 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1852.95 -4.21 -0.23 30.54
Spot Silver 41.26 -0.06 -0.15 33.70
Spot Platinum 1830.57 1.87 +0.10 3.57
Spot Palladium 730.65 8.02 +1.11 -8.61
TOCOM Gold 4624.00 -45.00 -0.96 24.00 73299
TOCOM Platinum 4592.00 -56.00 -1.20 -2.21 4451
TOCOM Silver 102.30 -3.10 -2.94 26.30 477
TOCOM Palladium 1850.00 -59.00 -3.09 -11.78 185
COMEX GOLD DEC1 1856.60 -2.90 -0.16 30.62 5926
COMEX SILVER DEC1 41.35 -0.27 -0.66 33.65 1077
Euro/Dollar 1.3606
Dollar/Yen 77.48

TOCOM prices in yen per gram. Spot prices in $ per ounce.
COMEX gold and silver contracts show the most active months

 (Reporting by Lewa Pardomuan;Editing by Clarence Fernandez)