* Gold matches one-month low on weak euro, falling stocks
* ETF holdings hit new record high
* Investors await ECB rate meeting, which could pressure
euro
(Updates prices, adds comments)
By Lewa Pardomuan
SINGAPORE, Jan 15 (Reuters) - Gold steadied on Thursday
after matching a one-month low hit the previous day due to a
weaker euro and falling stock markets, but a rise in ETF
holdings to a record high suggested bullion was still finding
favour among investors.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said it held 790.66 tonnes of gold on
Jan. 14, up 3.06 tonnesfrom 787.60 tonnes on Jan. 9, with poor
prospects for the global economy igniting demand for bullion as
a safe-haven asset. []
Gold <XAU=> was trading at $809.95 an ounce, barely changed
from from New York's notional close of $810.55. It matched
Wednesday's one-month low of $806.40, partly driven by weak
stock markets that encouraged investors to cash in.
"Momentum indicators on the daily charts are nearing
oversold levels and this hints that we might see a temporary
respite in the form of short covering," said Pradeep Unni,
analyst at Richcomm Global Services.
Gold was around 9 percent below an 11-week high of $889.55
struck in late December but dealers saw buying on dips by
jewellers in Asia ahead of the Chinese New Year festive season
later in January.
"Physical buying has recovered a bit. But there's still
some pressure related to currencies right now. The U.S. dollar
is quite strong. That's why the funds still continue to sell,"
said Dick Poon, manager of precious metals at Heraus Ltd in
Hong Kong.
"Gold still holds around the $800 level, which I think is
related to the ETF and physical buying," said Poon, referring
to buying ahead of the Lunar New Year later this month.
The euro fell to $1.3173 <EUR=> on Thursday, having hit a
one-month low of $1.3093 on EBS the previous day, after ratings
agency Standard & Poor's cut Greece's sovereign debt rating,
heightening fears over the euro zone economy. []
Japan's Nikkei average fell nearly 5 percent after U.S.
stocks dropped to six-week lows on worries about a deepening
recession and as Japanese machinery orders fell a record 16.2
percent in November from the previous month. []
Looking ahead, bullion trading would be volatile, with
declines in oil and shares and the firm dollar likely to spur
selling, dealers said.
"Gold in ETF is still relatively strong. But the only thing
I would say, mainly the U.S. dollar affects the price at the
moment," said David Moore, commodity strategist at Commonwealth
Bank of Australia in Sydney.
"I think a lot of people have been expecting gold to go
higher because of the sort of safe-haven demand but reality is
that's been very inconsistent so far."
Oil <CLc1> fell $1 on Thursday to near $36 a barrel,
extending an overnight decline as grim data from the world's
major economies and the return of a banking crisis further
darkened the global energy demand outlook. []
Platinum <XPT=> was trading at $912.50 an ounce, down
$20.50 from New York notional close. New York gold futures
<GCZ9> added $1.3 an ounce to $810.1 in electronic trade.
Precious metals prices at 0718 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 809.95 -0.60 -0.07 -2.73
Spot Silver 10.45 -0.09 -0.85 -29.25
Spot Platinum 912.50 -20.50 -2.20 -39.97
Spot Palladium 176.00 -4.50 -2.49 -52.17
TOCOM Gold 2329.00 -71.00 -2.96 -23.89
42946
TOCOM Platinum 2620.00 -167.00 -5.99 -50.93
15777
TOCOM Silver 298.40 -13.70 -4.39 -44.84
359
TOCOM Palladium 515.00 -35.00 -6.36 -61.88
204
Euro/Dollar 1.3153
Dollar/Yen 89.07
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Lincoln Feast)
