* Gold flat but remains near $1,274.75 an ounce record
* Firmer dollar holds prices back, technical moves seen
* Coming Up: U.S. industrial output for Aug; 1315 GMT
(Recasts, adds comments/details, changes dateline pvs SINGAPORE)
By Michael Taylor
LONDON, Sept 15 (Reuters) - Spot gold traded flat on
Wednesday, hovering near record highs hit in the previous
session, as investor buying and lingering doubts about the
global economy offset a firm dollar.
Spot gold <XAU=> was little changed at $1,268.75 an ounce by
1005 GMT, after having surged more than 2 percent to a record
$1,274.75 an ounce in the previous session, its biggest one-day
gain in four months.
U.S. gold futures for December delivery <GCZ0> were last up
$1.4 an ounce at $1,270.3.
"The investment demand has risen," said Eugen Weinberg,
analyst at Commerzbank. "I wouldn't be surprised if gold goes to
$1,300 but it will not be done on any fundamental demand, but
more on technicals.
"I cannot rule it out, given the positive chart situation
and relatively strong demand from investors."
According analysts' research, gold support is at $1,250 and
resistance at $1,280, while silver support is at $20.00 and
resistance at $20.60.
Weinberg said U.S. industrial production data due out later
on Wednesday may move prices.
Bullion is now on course for a rise of about 16 percent in
2010, fuelled largely by investor nervousness that stemmed from
the fallout from the euro zone debt crisis and from lingering
jitters about the pace of global economic recovery.
Late on Tuesday, respected metals consultancy GFMS Ltd said
in its Gold Survey 2010 Update, that gold could rally above
$1,300 this year, as uncertainty about economic recovery and a
sovereign debt crisis stoke investment interest. []
"Prices hit a record yesterday as the dollar weakened and
forecasts from the GFMS suggested that central banks would be
net buyers this year for the first time since 1988," investment
bank Fairfax said in a note. "As a shortage of supply in the
market now looks likely to continue, prices look likely to climb
further."
U.S. short-term rates remained steady at low levels on
Tuesday, anchored by the Federal Reserve's determination to keep
rates down, likely making gold attractive as an investment.
[]
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said its holdings rose to 1,298.698 tonnes
by Sept 14 from 1,292.619 tonnes by Sept 13. The holdings hit a
record at 1,320.436 tonnes on June 29. []
Although the gold price has held within a few dollars of
record highs for a few weeks, the market is also in the full
throes of the buying season in some of the world's biggest
consumers.
"It is playing a role," added Commerzbank's Weinberg.
"Traditional demand from India in the third and fourth quarter
is relatively high.
"The current high levels are not very attractive for Indian
buyers, and I wouldn't be surprised to see jewellery demand
falling further."
AngloGold Ashanti Ltd <ANGJ.J>, the world's third-largest
gold miner, plans to remove its gold hedge book -- one of the
biggest among its global peers -- by early 2011. []
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic on gold's rise to record high:
http://graphics.thomsonreuters.com/F/09/CMD_GLDHGH0910.gif
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Among other markets, the dollar jumped more than two yen
from a 15-year low after Japan intervened to sell yen for the
first time in six years, but with key chart levels yet to break,
traders were sceptical the impact would be lasting. []
Gold has long served investors as an alternative to volatile
currencies, equities or sovereign bonds, that investors will
swiftly punish.
Spot silver <XAG=> rose to $20.52 an ounce, the highest
level in two and a half years, before easing to $20.46 an ounce.
Platinum <XPT=> hit $1,601.50 an ounce, the highest since
June 21, before softening to $1,586, versus $1,586.30 at the
previous close.
Palladium <XPD=>, which is predominantly used in the
production of auto catalysts, traded at $546 from $547.75, after
earlier touching $553 on Tuesday, the highest since end-April.
(Reporting by Michael Taylor; editing by Lin Noueihed)
