* Gold may ease as equities draw investor interest
* SPDR Gold holdings <XAUEXT-NYS-TT> fall 4.58 tonnes
By Chikako Mogi
TOKYO, Aug 26 (Reuters) - Gold prices rose on Wednesday with
the dollar barely moving after slipping the day before, but
investors were wary about rising equities drawing money away from
bullion, and also before U.S. housing data later in the day.
Investors kept their focus on the greenback for near-term
market direction, as a firmer dollar makes gold priced in the
U.S. currency 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 can boost 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 investor 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 $947.60 an ounce as of
0548 GMT, compared with New York's notional close of $943.55.
U.S. gold futures for December delivery <GCZ9> were up 0.4
percent at $949.50 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.
Japan's Nikkei stock average hit its highest point in 10
months on Wednesday after U.S. data strengthened hopes for an
economic recovery, but trade was cautious ahead of an Aug. 30
election in Japan. []
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 <.MIAPJ0000PUS> 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 0550 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 947.60 4.05 +0.43 7.66
Spot Silver 14.38 0.14 +0.98 27.03
Spot Platinum 1242.50 3.50 +0.28 33.32
Spot Palladium 286.00 0.00 +0.00 55.01
TOCOM Gold 2882.00 16.00 +0.56 12.01 24552
TOCOM Platinum 3777.00 11.00 +0.29 42.42 8684
TOCOM Silver 434.20 7.30 +1.71 35.98 90
TOCOM Palladium 875.00 17.00 +1.98 59.09 397
Euro/Dollar 1.4311
Dollar/Yen 94.24
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Miho Yoshikawa; Editing by Joseph
Radford)
