* Gold edges down, investors book profits
* PGMs struggle to hold gains; platinum off highs
* Coming Up - Weekly U.S. jobless claims; 1230 GMT
(Updates prices)
By Lewa Pardomuan
SINGAPORE, April 8 (Reuters) - Gold slipped on Thursday
after rising to its highest in nearly three months the previous
day as a strong dollar ignited selling in the physical sector,
while platinum group metals struggled to hold gains after a
rally.
Volume was light, making precious metals prone to sharp
movements. Investors wary about Greece's ability to resolve its
fiscal problems could still turn to gold as a safe haven but
further rallies in the dollar could cap gains.
Spot gold <XAU=> was at $1,146.45 an ounce by 0528 GMT,
down 55 cents from New York's notional close on Wednesday, when
it rose as high as $1,152.75 an ounce, its strongest since
mid-January, despite a tumbling euro.
"It's been rising too fast, so of course there's profit taking
in the market. Everytime gold approaches $1,150-$1,152, it
can't break through, so I guess we are cautious about these
levels," said Ronald Leung, director of Lee Cheong Gold Dealers
in Hong Kong.
"We're still watching developments in Greece. Sentiment is
a bit bullish," said Leung, referring to the prospect of low
interest in the United States that boosts gold's safe-haven
appeal.
Palladium <XPD=> dropped after hitting a two-year high
around $511 on Wednesday on early buying by Japanese auto
catalyst makers as well as gains in gold prices.
Sister metal platinum <XPT=> rose as high as $1,716.50 an
ounce on Thursday on the back of early buying in Tokyo platinum
futures <0#JPL:> before easing slightly. The metal had risen to
a 20-month high of $1,723 on Wednesday.
Platinum group metals have benefited from expectations of
an economic recovery, with dealers reporting steady demand from
auto catalyst makers in Japan.
The euro hovered within reach of this year's low against
the dollar on Thursday after Greece's borrowing costs hit a new
high and its banks asked for support, while the yen was firm
following a drop in U.S. Treasury yields. []
U.S. gold futures for June delivery <GCM0> fell $4.9 an
ounce to $1,148.1 an ounce, having risen to its strongest in
nearly three months the previous day.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,130.737 tonnes
by April 7, up 0.914 tonnes from the previous business day.
[]
"I think gold is consolidating. There's some physical
selling but the amount is not substantial," said a dealer in
Hong Kong. "Consumers are waiting for fresh leads," he added.
Indian jewellers are stocking up as the wedding season
kicks in in the world's largest gold consumer, but higher
bullion prices have ignited selling in other parts of Asia,
dealers said on Wednesday. []
Precious metals prices at 0528 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1146.45 -0.55 -0.05 4.63
Spot Silver 18.11 0.00 +0.00 7.61
Spot Platinum 1707.00 6.50 +0.38 16.36
Spot Palladium 503.75 -2.25 -0.44 24.23
TOCOM Gold 3444.00 2.00 +0.06 5.68
35599
TOCOM Platinum 5103.00 -64.00 -1.24 16.48
19252
TOCOM Silver 54.70 0.00 +0.00 5.80
726
TOCOM Palladium 1505.00 -31.00 -2.02 29.18
477
Euro/Dollar 1.3331
Dollar/Yen 93.18
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
