* Gold may come off a bit as equities draw investor interest
* SPDR Gold holdings <XAUEXT-NYS-TT> fall 4.58 tonnes
By Chikako Mogi
TOKYO, Aug 26 (Reuters) - Gold prices inched up on Wednesday
as the dollar barely moved after slipping the day before, but
investors were wary about rising equities drawing money away from
bullion, and also before U.S. housing data due later in the day.
Investors kept their focus on the dollar for near-term market
direction, as a firmer dollar makes gold priced in dollars more
expensive for non-dollar holders and dampens interest in bullion
as an alternative asset.
A weaker dollar supports gold if investors are selling the
U.S. currency to buy other assets including gold. If the dollar's
weakness is due to U.S.-related concerns, it also boosts the
appeal of gold as a hedge against risks.
"Gold is still in ranges, but it may come off a bit as
equities are climbing and drawing investors' money," said a
trader based in Singapore.
"Data is showing the U.S. economy may be picking up, making
investors cautious," the trader said, adding that gold will still
likely see disinvestments at prices near $960-$970 while finding
support near $930 when buying interest resumes.
Spot gold <XAU=> was up 0.4 percent at $947.40 an ounce as of
0235 GMT, compared with New York's notional close of $943.55.
U.S. gold futures for December delivery <GCZ9> were up 0.3
percent at $948.90 per ounce, compared with $946 an ounce on the
COMEX division of the New York Mercantile Exchange. Gold futures
surged to a session high of $954 on Tuesday.
Japanese stocks rose 0.6 percent on Wednesday, buoyed by U.S.
data that strengthened hopes for an economic recovery. []
U.S. stocks rose on Tuesday when a U.S. consumer confidence
index topped economists' forecasts and a home price index rose
for a second straight month in June, suggesting a recovery in two
sectors crucial to a rebound in the U.S. economy. []
Asian equities outside Japan <.MIAPJ000PUS> eased 0.2
percent.
The dollar was steady against the euro on Wednesday. The U.S.
currency had slipped against the euro and yen the day before as
upbeat U.S. data and the nomination of Ben Bernanke for a second
term as head of the Federal Reserve bolstered optimism,
encouraging some investors to buy higher-yielding currencies and
assets. []
Amid a lack of clear direction and the market failing to
break above the recent range of $930-$970, holdings at the
world's largest gold-backed exchange-traded fund, the SPDR Gold
Trust <GLD>, fell to 1,061.83 tonnes as of Aug. 25, down 4.58
tonnes or 0.4 percent from the previous business day. []
On Friday, its holdings rose for the first time since July 16
for the biggest one-day gain since June 1, and held at that level
for two business days.
Among other precious metals, spot palladium <XPD=> eased 0.5
percent to $284.50 per ounce.
On Tuesday, palladium prices touched $287.50, the highest
since early September last year, as hopes for an improvement in
the balance of supply and demand and gains in gold boosted
interest in the material used in auto catalysts.
Precious metals prices at 0233 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 947.10 3.55 +0.38 7.61
Spot Silver 14.32 0.08 +0.56 26.50
Spot Platinum 1236.00 -3.00 -0.24 32.62
Spot Palladium 284.50 -1.50 -0.52 54.20
TOCOM Gold 2874.00 8.00 +0.28 11.70 19012
TOCOM Platinum 3758.00 -8.00 -0.21 41.70 6044
TOCOM Silver 433.00 6.10 +1.43 35.61 69
TOCOM Palladium 870.00 12.00 +1.40 58.18 221
Euro/Dollar 1.4301
Dollar/Yen 94.00
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Watson)
