* Gold rises further, holds above $900
* Platinum tracks gold higher despite poor fundamentals
* ETF holdings unchanged
By Lewa Pardomuan
SINGAPORE, May 5 (Reuters) - Gold rose further on Tuesday,
holding above $900 an ounce as a weaker U.S. dollar and firm
oil prices lured investors back into the metal, although an
increase in risk appetite and technical barriers could cap
gains.
Bullion jumped almost 2 percent on Monday in a rally also
driven by demand from jewellers in main consumer India and
pent-up buying ahead of closely watched results of stress tests
on U.S. banks. Other precious metals tracked gold higher.
Spot gold <XAU=> was quoted at $904.25 an ounce, up $1.90
from New York's notional close on Monday, when it rallied to
its strongest in nearly a week at $906.60 an ounce -- still
below a near four-week high of $918.25 last Monday.
"I would say that the very much weaker dollar has supported
gold a bit. But I dont think we are out of the woods yet," said
Adrian Koh, analyst at Phillip Futures in Singapore.
"I think today or the next will be key for gold as we are
hovering near key downtrend resistance around $910-$915. I
would say it's a downtrend resistance beginning in February. So
unless we are able to hold above these levels, gold could still
very much hover around these levels for some time."
The dollar dropped against major currencies on Tuesday,
with its index <.DXY> languishing at five-week lows, after
hopes the worst in the global economy may have passed spurred a
rally in stocks. []
U.S. regulators have deemed about 10 of the 19 U.S. banks
being stress tested will need to raise more capital, according
to a source familiar with official talks. Officials are
scheduled to release the official results on Thursday.
[]
Oil inched down towards $54 a barrel on Tuesday but was
within sight of its highest settlement so far this year on
hopes the economic recession would end soon. [].
"With a stronger oil price now, there is a chance for gold
to break the first resistance level at $910," said a dealer in
Singapore.
"The odd thing to note however is that despite the fact
that the equities markets are rallying, gold is going higher as
well at the same time," he said.
But some dealers said rising stock markets, which highlight
a resurgence in risk appetite, could potentially limit gains in
gold despite renewed inflation worries.
Bullion has dropped more than 9 percent since spiking to an
11-month high above $1,000 in February on profit taking, lower
oil prices and gains in stocks markets, which prompted some
investors to shift their money into equities.
"If the stock markets are going to edge higher, investors
will be less willing to look at safe havens. I think its going
to cap gains in gold," said Koh of Phillip Futures.
U.S. gold futures for June delivery <GCM9> added $3.1 an
ounce at $905.3 on the COMEX division of the New York
Mercantile Exchange, having hit a high of $908.30 on Monday --
its highest since April 27.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings stayed at 1,104.45 tonnes
as of May 4, unchanged since April 23. (GOL/SPDR]
PRICES
Precious metals prices at 0247 GMT
Metal Last Change Pct chg Day ago pct MA 30
RSI Spot gold $904.25 $1.90 +0.21% +0.81% $860.10
57
Spot silver $13.07 $0.06 +0.46% +9.10% $11.29
61
Spot plat $1119.50 $2.50 +0.22% +2.90% $1152.28
43
COMEX gold $905.30 $3.10 +0.34% +1.93% $900.36
55
Currencies
Euro/dlr $1.341 $0.017 +1.28% +1.15%
Dlr/yen 98.73 1.96 +2.03% +1.63%
(Editing by Michael Urquhart)
