* iShares Silver Trust holdings hit record high; SPDR down
* Gold neutral between $1,285-$1,296 []
* Coming up: U.S. ECRI weekly index; 1430 GMT
By Rujun Shen
SINGAPORE, Sept 24 (Reuters) - Gold prices were steady on
Friday as disappointing data from the U.S. and Europe renewed
concerns over the economic recovery, keeping market sentiment
supported.
New claims for unemployment benefits in the U.S. rose last
week, and Ireland's economy shrank 1.2 percent in the second
quarter. [] []
Spot gold edged down half a dollar at $1,293.05 an ounce by
0347 GMT, below the record high of $1,296.1 hit on Wednesday.
Gold is headed for a weekly gain of 1.5 percent, the second
consecutive week of gains.
"In real terms it's hard to say gold prices are too high. I
think the price will be quite sticky at these levels. From an
investment perspective we are starting to see some substitution
of gold for silver. In the other metals palladium may also
benefit as a cheaper alternative to gold," Ben Westmore,
commodities economist at National Australia Bank.
Dealers said trading was thin in Asia, and gold was
expected to move around the current level for the rest of the
day, as market players wait for more action when Europe and the
U.S. markets open.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said its holdings fell to 1,301.433 tonnes
by Sept 23 from 1,304.168 tonnes on Sept 21. []
"The ETF was down because there was some profit-taking
interest. Some people liquidated their positions before the
weekend. But he trend is still good. The market still has a
chance to test $1,300," said a Hong Kong-based trader.
He expected prices to move higher next week when Chinese
markets reopen after a public holiday.
"We don't expect much selling in the Chinese market. Prices
will mostly be firmer."
Holdings in the world's largest silver-backed
exchange-traded fund, the iShares Silver Trust <SLV>, rose to
an all-time high of 9,582.59 tonnes by Sept 23 from 9,509.55
tonnes on Sept 21. []
For a graphic on the investment flow into the SPDR Gold
Trust and iShares Silver Trust, click:
http://link.reuters.com/tap84p
Silver has tried to catch up with gold's rally, after
lagging behind for the past couple of years. Spot silver <XAG=>
was flat at $21.14 an ounce, up 26 percent so far this year,
compared to an 18 percent rise in gold.
The gold-silver ratio, used to measure how many ounces of
silver is needed to buy an ounce of gold, lowered to 61.14,
approaching a four-year average of 60.24.
For a graphic on gold-silver ratio, click:
http://graphics.thomsonreuters.com/gfx1/RS_20102409113319.jpg
The same investor nervousness that has pushed gold to
record highs could just as quickly bring about the demise of
the gold bulls, said the head of Barrick Gold Corp
<ABX.TO><ABX.N>, the world's largest gold producer.
[]
"It is worth noting that at current levels, gold is
overbought and this raises the chances of a correction over the
near term," said Taso Anastasiou, an analyst at UBS.
"Key support has been defined at $1,157.60 which is the
July 28 low although support around $1,220.00 should provide a
firm on any pullback. Dips would be seen as a buy."
India's second-biggest gold importer MMTC Ltd <MMTC.BO>
expects to hike imports as the festival season and higher
incomes boost consumer spending, Director Ved Prakash said,
supporting record high prices. []
Precious metals prices at 0347 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1293.05 -0.45 -0.03 18.01
Spot Silver 21.14 0.00 +0.00 25.61
Spot Platinum 1632.00 -6.10 -0.37 11.25
Spot Palladium 552.50 1.55 +0.28 36.25
TOCOM Gold 3524.00 -6.00 -0.17 8.13
24233
TOCOM Platinum 4465.00 -5.00 -0.11 1.92
7981
TOCOM Silver 57.80 0.00 +0.00 11.80
237
TOCOM Palladium 1505.00 30.00 +2.03 29.18
287
Euro/Dollar 1.3351
Dollar/Yen 84.53
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Ed Lane)
