* 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
(Updates prices)
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 was little changed at $1,293.7 an ounce by 0627
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,"
Ben Westmore, a commodities economist at National Australia
Bank. "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."
Market players are waiting for more action during Europe
and U.S. tradng hours, as activity was low in Asia with some
countries on public holiday.
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 the 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
Spot silver <XAG=> was flat at $21.18 an ounce, up 26
percent so far this year, after lagging behind gold in the past
couple of years. Gold rose 18 percent so far this year.
The gold-silver ratio, used to measure the ounces of silver
needed to buy an ounce of gold, fell to 61.09, 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, a technical strategist at
UBS.
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 0627 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1293.70 0.20 +0.02 18.07
Spot Silver 21.18 0.04 +0.19 25.85
Spot Platinum 1638.50 0.40 +0.02 11.69
Spot Palladium 553.00 2.05 +0.37 36.37
TOCOM Gold 3531.00 1.00 +0.03 8.35
53263
TOCOM Platinum 4478.00 8.00 +0.18 2.21
18810
TOCOM Silver 57.90 0.10 +0.17 11.99
457
TOCOM Palladium 1513.00 38.00 +2.58 29.87
439
Euro/Dollar 1.3338
Dollar/Yen 84.68
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting by Rujun Shen; Editing by Manash Goswami)
