*Gold capped by lack of SPDR holdings <XAUEXT-NYS-TT> inflows
*Falling gold in non-dollar currencies also disappoints
By Risa Maeda
TOKYO, Oct 16 (Reuters) - Gold steadied around $1,050 an
ounce on Friday after falling more than $10 the previous day as
the dollar pared recent losses, prompting the precious metal to
consolidate from record highs hit earlier this week.
Gold is often considered as a hedge against the U.S.
currency.
Bullion was defensive despite a further decline in the dollar
and a rally in oil, and a halt in the actual inflow of funds into
gold discouraged further buying. Oil prices had lagged behind
recent gains in other commodities, including gold, traders said.
Spot gold <XAU=> was at $1,051.60 per ounce at 0322 GMT, up
0.2 percent from New York's notional close of $1,049.85.
It hit a record high for two days in a row to reach $1,070.40
on Wednesday. Its low on Thursday was $1,046.20.
U.S. gold futures for December delivery <GCZ9> were at
$1,052.60 per ounce, up 0.2 percent, after losing 1.3 percent in
the previous session.
But the recent rally was mainly driven by long positions
piling up in gold futures on a weakening dollar.
That showed a stark contrast to its gains at the beginning of
October, when investors put new money into gold-backed
exchange-traded securities, traders said.
"People seem to be getting tired of buying gold further,"
said Namoi Suzuki, a senior analyst at SC Asset Management Co in
Tokyo.
"The dollar's outlook is weak, so gold's basic strength will
be kept in tact. But it is disappointing that gold has stopped
rising in other currencies, which suggests the deterioration of
confidence among non-dollar investors," she said.
Bullion denominated in euros <XAUEUR=R> hit a seven-month
high earlier this week above 720 euros per ounce before falling
to around 704.
Key gold futures contract on the Tokyo Commodity Exchange
<0#JAU:> peaked on Wednesday at 3,088 yen per gram, that was even
with an year-to-date high marked in June.
In the currency market, the euro and high-yielding currencies
such as the Australian and the New Zealand dollars hit new highs
for the year against the dollar after positive U.S. data and
encouraging corporate earnings prompted investors to further
build long positions, dealers said.
Against a basket of currencies, the U.S. currency has fallen
about 7 percent so far this year. []
Underlining lacklustre investor interest at the current high
price levels, gold holdings by the world's largest gold-backed
exchange-traded fund, the SPDR Gold Trust <GLD>, have been flat
since Oct. 7.
Its holdings stood at 1,109.314 tonnes on Thursday, the
highest since early July but still off a record high of 1,134.03
tonnes marked on June 1 and 2. []
Precious metals prices at 0326 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1051.60 1.75 +0.17 19.48
Spot Silver 17.43 0.11 +0.64 53.98
Spot Platinum 1347.00 -1.50 -0.11 44.53
Spot Palladium 324.00 0.50 +0.15 75.61
TOCOM Gold 3076.00 11.00 +0.36 19.55 39378
TOCOM Platinum 3934.00 24.00 +0.61 48.34 6230
TOCOM Silver 508.30 -4.30 -0.84 59.19 339
TOCOM Palladium 949.00 5.00 +0.53 72.55 136
Euro/Dollar 1.4942
Dollar/Yen 90.68
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Risa Maeda; Editing by Michael Watson)
