* Fed statement enhances gold's inflation hedge status
* SPDR Gold holdings <XAUEXT-NYS-TT> steady
By Miho Yoshikawa
TOKYO, Aug 13 (Reuters) - Gold inched up to trade around $950
on Thursday, approaching the previous day's high after the
Federal Reserve said it would keep interest rates near zero,
although further gains in gold were seen likely to be capped.
The U.S. central bank also made its clearest statement to
date on Wednesday that it sees the recession nearing an end and
shattered financial markets are healing. []
"Gold prices were bolstered by the U.S. Federal Reserve when
at the FOMC meeting it signaled its strong resolve to keep
interest rates at near zero, thereby enhancing bullion's status
as a hedge against inflation," Investec Bank (Australia) Ltd said
in a report.
Gold <XAU=> was $949.40 per ounce at 0325 GMT, up 0.4 percent
from New York's notional close of $946.05.
It rose as high as $951.90 on Wednesday.
Market participants said, however, that gold was unlikely to
climb further as the meeting had ended without any surprises.
Koichiro Kamei, managing director at Market Strategy
Institute Inc, said recent economic data already suggested the
economy had probably put the worst behind it.
"From the point of the view of the gold market, there was no
major policy change," he said.
He said the statement held little else for gold to trade on.
The precious metal has been trading within a range of
$920-$980 recently, and Kamei said it was likely to remain stuck
within recent levels.
The precious metal has recently held firm on signs that the
worst of the economic crisis is nearly over, after heightened
deflation worries had sent gold prices toward $900 an ounce
earlier this year.
U.S. gold futures for December delivery <GCZ9> were at $952.1
per ounce, down 0.04 percent.
The dollar edged lower on Thursday after the Federal Reserve
painted a less gloomy outlook for the U.S. economy, an assessment
that led investors to return to commodity-linked currencies.
[]
The weaker dollar also helped support gold as it makes
commodities priced in the currency less expensive for non-U.S.
investors.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings stood at 1,065.49 tonnes as
of Aug. 12, unchanged from the previous business day, when it
fell 0.29 percent. []
Investment demand for gold remains soft, with holdings in the
SPDR Gold Trust falling since hitting a record high of 1,134.03
tonnes on June 1.
In contrast, gold trading is showing signs of recovering in
India, a large consumer of the metal, as jewellers take advantage
of a price drop to stock up during the festive season.
[]
In industry news, ETF Securities Ltd, an operator of
commodity exchange-traded funds (ETFs), said it will launch five
ETFs backed by precious metals on the Tokyo Stock Exchange on
Aug. 24. []
PRICES
Precious metals prices at 0323 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 949.40 3.35 +0.35 7.87
Spot Silver 14.54 0.03 +0.21 28.45
Spot Platinum 1255.00 17.00 +1.37 34.66
Spot Palladium 270.00 0.00 +0.00 46.34
TOCOM Gold 2939.00 29.00 +1.00 14.22 20865
TOCOM Platinum 3870.00 89.00 +2.35 45.93 9389
TOCOM Silver 449.20 12.20 +2.79 40.68 163
TOCOM Palladium 847.00 5.00 +0.59 54.00 189
Euro/Dollar 1.4217
Dollar/Yen 95.88
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Watson)
