*Gold briefly touches 2-wk low of $833 as stocks fall
*Gold recovers ground with physical buying detected on dips.
*Geopolitical concerns also spurs safe-haven demand
(Updates prices, adds comments)
By Risa Maeda
TOKYO, Jan 8 (Reuters) - Gold firmed on Thursday, recovering
from a two-week low as continued worries about conflict in the
Middle East and financial market instability helped spur buying
at levels below $840 per ounce.
Gold briefly hit a new two-week low of $833 per ounce in
early trading as demand for cash increased after grim U.S. jobs
data renewed worries about the world's biggest economy and sent
equities sharply lower.
Tokyo's Nikkei share average <> fell almost 4 percent,
after U.S. stocks posted their biggest decline in over a month on
the data. []
But the metal bounced back as continued strife in the Gaza
Strip supported safe-haven buying and instability in global
financial markets prompted physical buying on dips, analysts
said.
Fuelling geopolitical concerns, three rockets fired from
Lebanon struck northern Israel, prompting the Jewish state to
respond with artillery fire. []
"The market is now more sensitive to bullish news as buying
has been detected below $840," said Kaname Gokon, deputy general
manager at Okato Shoji Co.
As of 0628 GMT, spot gold <XAU=> stood at $847.1 per ounce,
up 0.6 percent from New York's notional close of $842.20. On
Wednesday, gold dropped nearly 3 percent.
"Gold's steep fall yesterday does not warrant a change in its
trend. Gold rather looks directionless for now," said Tatsufumi
Okoshi, a senior economist at Nomura Securities Co's financial
and economic research center.
"Having said that, it will likely stay at the high end of the
recent range given financial market instability and ... as
geopolitical concerns remain," he said.
Gold hit a three-month high near $900 on Dec. 29, when
Israeli air strikes in Gaza pushed up oil prices on fears of
supply disruptions, but the dollar's recent rally against the
euro has curbed gains in gold.
The euro was down 0.1 percent at $1.3636 <EUR=> on Thursday,
having touched a one-month low of $1.3312 earlier this week.
Oil prices firmed on Thursday, but stayed below $43 per
barrel after tumbling 12 percent on Wednesday, when a U.S.
government report showed crude inventories rose much more than
expected in the world's top energy consumer. []
COMEX gold futures were firmer in Asia after falling 2.8
percent on Wednesday. U.S. gold futures for February delivery
<GCG9> stood at $848.2 per ounce, up $6.5 or 0.7 percent from
Wednesday's settlement on the COMEX division of the New York
Mercantile Exchange.
The December gold contract on the Tokyo Commodity Exchange
<0#JAU:> fell 72 yen per gram to 2,527 yen.
Cash platinum <XPT=> rose close to $1,000 as it traded at
$993 an ounce, up 2.1 percent from New York's notional close of
$972.50.
On Wednesday, it briefly topped the $1,000 mark for the first
time since Oct. 15. Okato's Gokon said the rise confirmed that
prices for white metal have risen to trade between $900-1,000 in
a technical correction after a sell-off on demand concerns pushed
prices to trade between $760-$860 in November.
The precious metal's resilience to the woes in the auto
sector has boosted hopes its price slide may be over, analysts
said.
Cash palladium <XPD=> rose 0.5 percent to $196 an ounce and
silver <XAG=> firmed 0.4 percent to $11.05 an ounce.
Precious metals prices at 0636 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 846.90 4.70 +0.56 -3.78
Spot Silver 11.05 0.04 +0.36 -2.39
Spot Platinum 996.00 23.50 +2.42 6.87
Spot Palladium 196.00 1.00 +0.51 6.23
TOCOM Gold 2522.00 -77.00 -2.96 -1.98 33327
TOCOM Platinum 2955.00 -46.00 -1.53 11.43 12034
TOCOM Silver 326.90 -12.50 -3.68 2.38 304
TOCOM Palladium 590.00 -21.00 -3.44 7.27 228
Euro/Dollar 1.3648
Dollar/Yen 92.08
TOCOM prices in yen per gram, except for silver which is in yen
per 10 grams, spot prices in $ per ounce.
(Editing by Edwina Gibbs)
