* Gold edges up in quite trade; dollar holds firm pre-Fed
* Markets await Bernanke comments for clues on U.S. growth
* ETFS US Silver Trust assets exceed $80 million
(Recasts, updates with quotes, closing prices, adds NEW YORK
to dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Aug 11 (Reuters) - Gold futures ended
slightly higher in quiet trade Tuesday as the market took a
breather amid a resilient dollar, and bullion investors now
focused on the upcoming Federal Reserve's policy-setting
statement.
The dollar largely held ground as investors continued to
trade on the strong U.S. jobs numbers from Friday. Gold futures
have closed lower for the past four sessions on the dollar's
resiliency.
"Gold fails to turn higher as the dollar is firm and oil is
lower. Nothing is going to happen until the Fed meeting is
over," said Leonard Kaplan, president of Illinois-based
Prospector Asset Management.
Traders are cautiously awaiting a two-day monetary policy
meeting by the U.S. Federal Reserve that kicks off on Tuesday.
While the Fed is likely to hold interest rates, Chairman Ben
Bernanke's accompanying statement will be scrutinized for clues
on the direction of the U.S. economy.
December gold <GCZ9> settled up 70 cents at $947.60 an
ounce on the COMEX division of the New York Mercantile
Exchange.
Spot gold <XAU=> at $945.30 an ounce at 2:40 p.m. EDT (1840
GMT), against $944.65 an ounce late in New York on Monday.
Gold is mainly being driven by the currency markets at
present, analysts said, as a stronger dollar makes commodities
priced in the currency more expensive for non-U.S. investors.
Better-than-expected economic data, a recovery in equity
markets and the success of the government's Cash for Clunkers
program to revitalize car sales are all boosting hopes the
recession may be bottoming out in the United States.
If Bernanke confirms this view, it could lift expectations
interest rates will rise, which may benefit the dollar. The
U.S. unit has previously benefited from economic weakness as it
is seen as a haven, but this trend may be turning, analysts
say.
"The dollar's ability to rally amid this improving economic
environment is a major change and shows that the focus of
dollar strength is shifting from risk aversion to future
interest rate hikes," MF Global said in a note.
GOLD INVESTMENT DEMAND LACKS
Oil dipped, meanwhile, reversing earlier gains, as equities
fell and the dollar firmed. Strength in the commodities
bellwether can indicate rising interest in the asset class, and
fuels interest in gold as a hedge against inflation. []
But lackluster physical and investment demand for gold
remains a drag on prices.
The world's largest gold-backed exchange-traded fund, New
York's SPDR Gold Trust <GLD>, said its holdings declined by
another 11,329 ounces on Monday, and have fallen more than 65
tonnes from record levels since June 1. []
While ETF inflows have slowed in the second and third
quarters after a strong start to the year, investment in
futures on New York's COMEX exchange have risen to balance this
out. But the sustainability of this trend is uncertain,
analysts said.
However, ETFS Silver Trust <SIVR.P>, a U.S. exchange-traded
product (ETP) trading on the New York Stock Exchange, said its
silver bullion holdings exceeded $80 million, underscoring
interest among retail investors.
Close Change Pct 2008 YTD
Chg Close Pct Chg
US gold <GCZ9> 947.60 0.70 0.1 884.30 7.2
US silver <SIU9> 14.345 -0.010 -0.1 11.295 27.0
US platinum <PLV9> 1245.10 -5.80 -0.5 941.50 32.2
US palladium <PAU9> 275.15 -1.45 -0.5 188.70 45.8
Prices at 2:40 p.m. EDT (1840 GMT)
Gold <XAU=> 945.35 0.70 0.1 878.200 7.6
Silver <XAG=> 14.32 0.02 0.1 11.30 26.7
Platinum <XPT=> 1239.50 -4.00 -0.3 924.50 34.1
Palladium <XPD=> 272.50 0.50 0.2 184.50 47.7
Gold Fix <XAUFIX=> 942.75 -2.25 -0.2 836.50 12.7
Silver Fix <XAGFIX=> 14.355 -0.115 -0.8 14.760 -2.7
Platinum Fix <XPTFIX=> 1247.00 0.00 0.0 1529.00 -18.4
Palladium Fix <XPDFIX=> 274.00 0.00 0.0 365.00 -24.9
(Additional reporting by Martina Fuchs in London; Editing by
Lisa Shumaker)
