* SPDR gold ETF holdings rise around 12 T to record
* Medium-term outlook positive for gold as rates seen low
(Recasts, updates prices, adds comment)
By Jan Harvey and Michael Taylor
LONDON, June 9 (Reuters) - Gold eased on Wednesday from the
previous session's record high as gains in equity markets and
commodities reflected increased appetite for assets seen as
higher risk.
Spot gold <XAU=> was bid at $1,224.75 an ounce at 1540 GMT,
against $1,233.63 late in New York on Tuesday. U.S. gold futures
for August delivery <GCQ0> eased $18.20 an ounce to $1,227.4.
Prices touched a record $1,251.20 an ounce on Tuesday as
comments from Fitch that Britain faced what it called a
formidable challenge in cutting its budget deficit fuelled fears
over the outlook for European growth.
"Risk appetite has returned a bit after people parked their
money in gold to try and shelter from the storm," said Daniel
Major, an analyst at RBS Global Banking and Markets.
"As extreme risk aversion tails off, gold is going to suffer
... If we get some degree of normality returning to the markets,
gold safe-haven buying is likely to drift off."
European shares rose on Wednesday after falling for three
sessions as better-than-expected Chinese export data for May
boosted hopes for economic recovery []. A rise in U.S. stocks
pushed the Dow Jones industrial average above the 10,000 mark.
[]
The euro gained some stability on options demand, recovering
from its recent four-year low versus the dollar, but analysts
expected only a brief respite as strains in euro zone bond
markets hurt sentiment. []
Among other commodities, oil rose nearly 3 percent as
reports of stronger Chinese exports boosted expectations for raw
materials demand. Industrial metals like copper, lead and zinc
also climbed. [] []
The gold market remained supported by strong investment
interest, with holdings of the world's largest gold-backed
exchange-traded fund, New York's SPDR Gold Trust <GLD>, rising
to record highs at 1,298.53 tonnes on Tuesday. []
The 12-tonne rise in the trust's holdings reflects an inflow
of some $481 million at today's prices.
RATES SEEN STAYING LOW
The medium-term environment for gold looks set to stay
positive, with interest rates, which represent the opportunity
cost of holding non-interest bearing bullion, expected to remain
low. A hike in U.S. rates is not widely seen before 2011.
"Although gold is trading at nominal highs, we are staying
long as real rates are unlikely to move higher any time
soon, and macro concerns are likely to linger," said Morgan
Stanley in a note.
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For an interactive timeline showing gold's rise to record
highs, click on:
http://graphics.thomsonreuters.com/10/GLD_TMLN.html
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Among other precious metals, silver <XAG=> was at $18.17 an
ounce against $18.19.
"Silver remains very undervalued versus gold," said bullion
trader Goldcore in a note. "The ratio will likely continue to
fall and the much smaller silver market should continue to
outperform gold."
Platinum <XPT=> was at $1,533 from $1,530.50 an ounce, while
palladium <XPD=> was at $453.23 against $439.50.
Platinum group metals have failed to keep pace with gains in
gold this month as concerns over the economic outlook weigh on
buying interest for the autocatalyst metals.
"The PGMs are likely to underperform as long as investors
don't realise that economic growth is improving in some areas,"
said Quantitative Commodity Research consultant Peter Fertig.
(Reporting by Michael Taylor; editing by Jane Baird
