* Fed statement enhances gold's inflation hedge status
* SPDR Gold holdings <XAUEXT-NYS-TT> steady
By Miho Yoshikawa
TOKYO, Aug 13 (Reuters) - Gold rose to trade above $950 on
Thursday, after the Federal Reserve said it would keep interest
rates near zero, while a decline in the dollar provided an
additional boost.
The U.S. central bank also made its clearest statement to
date on Wednesday that it sees the recession nearing an end.
[]
"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," analysts at Investec Bank
(Australia) Ltd wrote in a report.
Gold <XAU=> was at $952.55 per ounce at 0606 GMT, up 0.7
percent from New York's notional close of $946.05.
Market participants said, however, that gold was unlikely to
climb much further on the content of the meeting itself, which
ended without any surprises.
Koichiro Kamei, managing director at Market Strategy
Institute Inc, said recent economic data had already suggested
the economy has probably put the worst behind it.
"From the point of the view of the gold market, there was no
major policy change," he said.
The precious metal has been trading within a range of
$920-$980 recently, and Kamei said it was likely to remain stuck
within these levels.
The precious metal has recently held firm on signs that the
worst of the economic crisis is nearly over, after heightened
deflation worries sent gold prices toward $900 an ounce earlier
this year.
U.S. gold futures for December delivery <GCZ9> were at $954.6
per ounce, down 0.2 percent.
The dollar slipped 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 country's festival 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 0616 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 951.60 5.55 +0.59 8.12
Spot Silver 14.63 0.12 +0.83 29.24
Spot Platinum 1255.50 17.50 +1.41 34.71
Spot Palladium 270.00 0.00 +0.00 46.34
TOCOM Gold 2953.00 43.00 +1.48 14.77 28058
TOCOM Platinum 3885.00 104.00 +2.75 46.49 12261
TOCOM Silver 452.00 15.00 +3.43 41.56 213
TOCOM Palladium 848.00 6.00 +0.71 54.18 225
Euro/Dollar 1.4253
Dollar/Yen 96.15
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
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)
