* Gold capped by lack of exchange traded fund inflows
* Falling gold in non-dollar currencies also disappoints
* No immediate impact from U.S. panel approval on
derivatives
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 precious metal consolidated from record highs hit
earlier this week.
The weakness in gold came despite further losses for the
dollar, which hit a 14-month low against the euro on Friday,
and a one-year high for oil, suggesting that recent investor
passion for gold may be cooling.
"People seem to be getting tired of buying gold," said
Naomi 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 intact. 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 700.
Spot gold <XAU=> was at $1,046.40 an ounce at 0510 GMT,
down 0.3 percent from New York's notional close and off the
record $1,070.40 hit on Wednesday.
Despite managing record highs for two days in a row, gold
looks set to end the week flat, after it best gain in six
months last week.
U.S. gold futures for December delivery <GCZ9> fell 0.3
percent to $1,047.70 an ounce after losing 1.3 percent in the
previous session.
Traders said the recent rally was mainly driven by long
positions piling up in gold futures on a weakening dollar, in
contrast to gains at the beginning of October, when investors
put new money into gold-backed exchange-traded securities.
Gold holdings at the world's largest gold-backed
exchange-traded fund, the SPDR Gold Trust <GLD>, have been flat
at 1,109.314 tonnes since Oct. 7. []
Traders shrugged off news late on Thursday that a U.S.
congressional committee approved new rules for over-the-counter
derivatives. []
"There's little immediate reaction here," said a nonferrous
metals analyst at a Japanese trading company.
"Oil prices, which in theory are among the most vulnerable
to such regulations, held onto their gains. That's proof."
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. []
Precious metals prices at 0514 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1046.90 -2.95 -0.28 18.95
Spot Silver 17.30 -0.02 -0.12 52.83
Spot Platinum 1340.50 -8.00 -0.59 43.83
Spot Palladium 323.50 0.00 +0.00 75.34
TOCOM Gold 3066.00 1.00 +0.03 19.16
46451
TOCOM Platinum 3928.00 18.00 +0.46 48.11
7762
TOCOM Silver 505.00 -7.60 -1.48 58.16
440
TOCOM Palladium 947.00 3.00 +0.32 72.18
190
Euro/Dollar 1.4924
Dollar/Yen 90.84
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
