* Gold down on profit-taking after New York rally
* Dollar remains key to direction
(Updates prices)
By Miho Yoshikawa
TOKYO, March 19 (Reuters) - Gold slipped more than 1
percent to briefly dip below $930 on Thursday after surging
late the previous session to a two-week high following the
Federal Reserve's surprise move to buy long-dated U.S
government debt.
Bullion staged a sharp rally from a six-week low of $882.90
on Wednesday, after the Fed announced it would buy up to $300
billion worth of long-dated U.S. government debt over the next
six months, reviving bullion's appeal as a hedge against
inflation. []
It rose as high as $945.05 after the Fed's move, its
highest since March 2.
"A very, very strong rally following the Fed's
announcement, and I think to a certain extent there would have
been profit-taking in what would be light volumes in Asia,
which would see it come off its peak," said Darren Heathcote,
head of trading at Investec Australia.
Gold <XAU=> was at $931.20 per ounce at 0649 GMT after
earlier sinking to a low of $925 per ounce, down 1.6 percent
from New York's notional close of $940.0 on Wednesday.
Heathcote said traders would be watching to see whether
gold would be able to consolidate and hold above the $930-$940
level.
He added that gold would continue to be driven by the
preformance of the U.S. dollar.
"While the dollar remains in a sort of weaker area,
particularly against the euro, we might well see gold sustain
these levels," he said.
The dollar limped higher on Thursday after suffering its
biggest daily plunge since 1985 as the Fed stunned investors by
saying it would buy long-term Treasuries in an effective
printing of money. []
A decline in the U.S. currency often boosts
dollar-denominated gold, which becomes cheaper for overseas
traders in addition to enhancing its appeal as a safe-haven
investment instrument.
Investor interest in gold was evident in the rise in
holdings of the world's largest gold-backed exchange-traded
fund, the SPDR Gold Trust <GLD>.
Holdings rose to a record 1,084.33 tonnes by March 18, up
15.28 tonnes or 1.4 percent from the previous day, the latest
figures showed. []
For a graphic on gold holdings, please click on:
https://customers.reuters.com/d/graphics/MKTS_SPDRGLD190309.jpg
For details of gold holdings by the ETF listed in New York
and also co-listed on other exchanges, click on:
http://www.exchangetradedgold.com/iframes/usa.php
Zurich Cantonal Bank said on Wednesday the amount of metal
it holds to back its gold ETF <ZGLD.S> has risen 13.5 percent
since Feb. 5 to 4.138 million ounces. []
[]
Exports of gold jewellery from Italy, Europe's top
manufacturer, fell 8.3 percent last year to 4.38 billion euros,
organisers of an upcoming jewellery trade fair in Arezzo said
on Wednesday. []
Precious metals prices at 0656 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 931.10 75.55 +8.83 5.79
Spot Silver 12.74 1.36 +11.95 12.54
Spot Platinum 1057.50 131.50 +14.20 13.47
Spot Palladium 182.00 0.00 +0.00 -1.36
TOCOM Gold 2876.00 417.00 +16.96 11.78
43152
TOCOM Platinum 3264.00 607.00 +22.85 23.08
10197
TOCOM Silver 389.50 67.90 +21.11 21.99
758
TOCOM Palladium 524.00 -12.00 -2.24 -4.73
182
Euro/Dollar 1.3434
Dollar/Yen 95.53
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 Risa Maeda; Editing by Clarence
Fernandez)
