* Investors take profits as records hit, sentiment bullish
* SPDR inches up closer to record high holdings
By Chikako Mogi
TOKYO, Nov 24 (Reuters) - Gold eased on Tuesday as investors
booked profits after prices hit record highs the day before, but
sentiment was underpinned by a weak dollar which makes bullion
cheaper for holders of other currencies and boosts its appeal as
an alternative asset.
Traders said gold may slide to as low as $1,145-$1,150 in a
near-term correction, but the market was bound to recover given
no change in supportive factors such as the weak dollar,
expectations for low U.S. interest rates and bullish sentiment
after gold purchases by some central banks.
Trade was quiet and was expected to remain so ahead of the
U.S. Thanksgiving holiday on Thursday, traders said. Japanese
financial markets were closed for a public holiday on Monday.
"Gold is facing profit-taking as it needed some correction
after hitting record highs in recent weeks," said a
Singapore-based trader.
"Overall market sentiment remains bullish," she said.
Spot gold <XAU=> fell as much as 0.7 percent to $1,157.35 per
ounce before trading at $1,163.60 as of 0227 GMT, down 0.2
percent. It hit an all-time high of $1,173.50 on Monday.
Gold has jumped 32 percent this year, rising 12 percent in
November alone.
U.S. gold futures for December delivery <GCZ9> eased as much
as 0.6 percent to $1,157.70 per ounce before trading at
$1,163.80, slightly below $1,164.70 on the COMEX division of the
New York Mercantile Exchange. Futures hit a record high $1,174.00
on Monday.
Gold's rally has largely been led by funds, and other
investors have been drawn into the market despite wariness about
high prices.
Speculative positions dipped, with noncommercial net long
U.S. gold futures positions easing 1 percent to 235,697 lots in
the week to Nov. 17 from 238,060, a weekly report by the U.S.
Commodity Futures Trading Commission showed. []
Investment picked up a tad, with holdings at the world's
largest gold-backed exchange-traded fund, SPDR Gold Trust <GLD>,
rising 3.964 tonnes or 0.4 percent from the previous business day
to 1,121.457 tonnes as of Nov. 23. The rise brought the holdings
closer to a record high of 1,134.03 tonnes hit on June 1.
[]
The dollar remained pressured on Tuesday after falling the
previous day against a basket of major currencies when remarks by
senior Federal Reserve official James Bullard reinforced views
that U.S. interest rates will stay low for a while.
Revived investor risk appetite on a rally in U.S. stocks,
strong U.S. housing data and higher commodity prices, also
pressured the dollar. []
Other precious metals were also off Monday's multi-month
highs, dragged lower by gold's retreat from record highs.
Platinum <XPT=> was at $1,452.50 per ounce after hitting
$1,473.50 on Monday, its highest since September 2008, while
silver <XAG=> stood at $18.59, off $18.91 hit on Monday, its
highest since July 2008.
Precious metals prices at 0230 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1163.65 -2.20 -0.19 32.21
Spot Silver 18.60 0.01 +0.05 64.31
Spot Platinum 1451.50 -3.00 -0.21 55.74
Spot Palladium 369.00 0.00 +0.00 100.00
TOCOM Gold 3337.00 57.00 +1.74 29.69 47993
TOCOM Platinum 4156.00 36.00 +0.87 56.71 10101
TOCOM Silver 533.50 3.60 +0.68 67.08 339
TOCOM Palladium 1061.00 9.00 +0.86 92.91 119
Euro/Dollar 1.4954
Dollar/Yen 88.84
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Edwina Gibbs)
((chikako.mogi@thomsonreuters.com; +81 3 6441 1871; Reuters
Messaging: chikako.mogi.reuters.com@reuters.net))
((If you have a query or comment on this story, send an email to
news.feedback.asia@thomsonreuters.com))
((Multimedia versions of Reuters Top News are now available for:
* 3000 Xtra : visit
http://topnews.session.rservices.com
* BridgeStation : view story .134
* Reuters Plus : from your WebDSS screen
For more information on Top News, visit
http://topnews.reuters.com))
Reuters Terminal users can see related news and prices by
double clicking on the codes in brackets:
- All precious metals headlines []
- Precious metals market reports []
- Daily fixing headlines []
- Technical analysis []
- Indian gold reports []
- European gold prices <GOLD/EU1><GOLD/EU2><0#PREC>
- London interbank gold forward rates <GOFO> <0#GOFO=>
- London silver forwards <SIFO><SIFO=>
- Gold lease rates <LGLR><0#LGLR=>
- London Bullion Market Association <LBMA01>
- New York Comex gold <0#GC:> and silver <0#SI:>
- New York platinum <0#PL:> and palladium <0#PA:>
- Asian gold prices <GOLD/ASIA1><0#PREC>
- Australian precious metals prices <GOLD/ASIA2><0#AUPREC=>
- Shanghai Gold Exchange prices <SGE/MENU>
- Hong Kong gold exchange prices <HKGG>
- Hong Kong bullion prices <SHKG>
- Indian bullion prices <INBULL><0#PREC-IN>
- Japanese producer prices <JP/PROD1>
For Related News and other topics, double click on one of these
codes:
SPEED GUIDES
<COMMOD> <ENERGY>
<PRECIOUS/1> <PRECIOUS/2>
<REUTERS>
