(Repeats to delete extra word in first paragraph)
* Gold bounces on weaker dollar, physical buying
* For the technical on gold, click []
* Coming Up: U.S. Initial jobless claims Weekly; 1230 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, July 29 (Reuters) - Gold rebounded on Thursday
as the U.S. dollar weakened against other currencies but gains
are seen limited after holdings in the world's largest
gold-backed ETF dropped to their weakest since early June.
While jewellers were happy to buy at lower levels,
uncertainties in the outlook for the U.S. economy and poor
technicals weighed on sentiment. Other precious metals tracked
bullion higher.
Spot gold <XAU=> added $2.80 an ounce to $1,165.35 an ounce
by 0259 GMT after falling as low as $1,156.90 on Wednesday, its
weakest since late April. Bullion hovered below the 50-day and
100-day moving averages.
For a 24-hour gold technical outlook, see:
http://graphics.thomsonreuters.com/WT/20102907090201.jpg
"There's a lot of safe-haven positioning being unwound
right now in the gold market. Potentially, it could unwind down
$1,130-$1,120 pretty quickly," said Mark Pervan, senior
commodities analyst at ANZ in Melbourne.
"A lot of the gold gains in the last six months were driven
by euro weakness, and that was really safe haven buying. The
trend doesn't look good. Potentially, it could move down
towards the low $1,100s," said Pervan, referring to levels last
seen in April.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said its holdings fell to 1,282.279 tonnes
by July 28 from 1,300.829 on July 27 -- their lowest since
early June. The holdings hit a record at 1,320.436 tonnes on
June 29. []
Cash gold was nearly 8 percent below a lifetime high around
$1,264 struck in June, when investors poured money into bullion
on worries the euro zone debt crisis would spread. U.S. gold
futures for August delivery <GCQ0> rose $4.5 $1,164.9 an ounce.
The Nikkei fell on Thursday as U.S. stocks slipped after
weak durable goods figures and a downbeat assessment of the
economy from the Fed's Beige Book kept the benchmark S&P 500
trapped below its 200-day moving average. [] []
The U.S. dollar slipped towards three-month lows against a
basket of currencies on Thursday as investors cut their
positions due to fresh evidence of a patchy recovery in the
U.S. []
"We're seeing a bit of short covering, so that's why the
market has stabilised at current levels. A drop in ETF may
suggests investors think the euro zone is getting better," said
a dealer in Hong Kong.
"Gold looks slightly bearish, although we see a mixture of
buying from jewellers and other physical buyers."
The European Central Bank will likely wait until late 2011
before hiking interest rates, according to a Reuters poll of
over 70 economists who stayed cautious in July despite some
encouraging economic data. []
U.S. crude futures were steady around $77 a barrel on
Thursday after falling for a second day on a surprise build in
crude oil inventories. []
Precious metals prices at 0259 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1165.35 2.80 +0.24 6.36
Spot Silver 17.56 0.12 +0.69 4.34
Spot Platinum 1537.00 5.25 +0.34 4.77
Spot Palladium 470.00 4.07 +0.87 15.91
TOCOM Gold 3276.00 -22.00 -0.67 0.52
23785
TOCOM Platinum 4355.00 -32.00 -0.73 -0.59
6346
TOCOM Silver 49.90 -0.90 -1.77 -3.48
166
TOCOM Palladium 1328.00 -3.00 -0.23 13.99
166
Euro/Dollar 1.2996
Dollar/Yen 87.15
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Ed Lane)
