* Gold hits 7-week high as equities drop
* For a technical view on gold, click []
* Coming Up: U.S. NAHB housing market index Aug; 1400 GMT
(Updates prices)
By Lewa Pardomuan
SINGAPORE, Aug 16 (Reuters) - Gold rose to its strongest in
more than a month on Monday as pessimism about the global
economic recovery sparked buying from investors, but selling
from jewellers could cap gains.
Holdings in the world's largest bullion-backed ETF, SPDR
Gold Trust, were unchanged, suggesting that some investors were
happy to hold on to bullion after recent U.S. economic data
pointed to weakness in the economy. []
Spot gold <XAU=> added $5.60 to $1,220.10 an ounce by 0634
GMT, having hit an intraday day high of $1,220.60 -- its
highest since July 2. Bullion struck a record around $1,264 in
June.
For a 24-hour gold technical outlook, see:
http://graphics.thomsonreuters.com/WT/20101608092315.jpg
"Our in-house analysts have been bullish on gold because of
the state of the global economy," said a physical dealer in
Singapore who trades gold bars. "They are still looking at gold
reaching $1,300 and they want us to buy gold on dips."
"But we do see selling from the physical side because they
are price sensitive. There is selling from Thailand and
Indonesia. I guess the buying is more from investors, and not
from jewellers."
U.S. gold futures for December delivery <GCZ0> rose $5.7 to
$1,222.3 an ounce, extending Friday's gains, when weak U.S.
economic data prompted investors to buy gold as an alternative
investment.
Japan's Nikkei average ticked down on Monday as figures
showed Japan's economy slowed sharply from the previous two
quarters and after U.S. stocks closed out their worst week in
six with a whimper on Friday on poor economic data. [] []
Despite the current uptrend in the gold market, some
investors might have factored in the bad news from the United
States and may start looking for fresh impetus to help bullion
challenge a July high of around $1,222.
"For the next two weeks we expect gold to trade in a range
between $1,180 and $1,240 an ounce. The downside gets very
critical only once the metal falls below the $1,150 mark," said
Heraeus in a report, referring to a low seen in April.
"It will be important to see how the investors behave after
the summer recess and whether they will return to the market
again as buyers."
The euro edged up 0.3 percent against the dollar to $1.2795
<EUR=>, having pared its losses after dipping to $1.2734 on
trading platform EBS earlier on Monday, its lowest against the
dollar in almost a month. []
Oil prices edged higher towards $76 on Monday, boosted by a
weaker dollar, while a fall in Asian stock markets on news of a
slowdown in Japan's economic growth restricted gains. []
Precious metals prices at 0624 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1220.10 5.60 +0.46 11.35
Spot Silver 18.20 0.12 +0.66 8.14
Spot Platinum 1531.00 11.00 +0.72 4.36
Spot Palladium 476.00 4.00 +0.85 17.39
TOCOM Gold 3379.00 1.00 +0.03 3.68
24885
TOCOM Platinum 4260.00 -12.00 -0.28 -2.76
10704
TOCOM Silver 51.10 0.10 +0.20 -1.16
345
TOCOM Palladium 1322.00 3.00 +0.23 13.48
85
Euro/Dollar 1.2797
Dollar/Yen 85.84
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
