* Gold extends losses, near 2-month low
* For the technical view on gold, click []
* Coming Up: U.S. weekly initial jobless claims; 1230 GMT
(Updates prices, adds activity in physical sector)
By Lewa Pardomuan and Rujun Shen
SINGAPORE/SHANGHAI, July 22 (Reuters) - Gold slipped more
than half a percent on Thursday and could revisit its weakest
level in two months as investors sold bullion to cover equities
losses ahead of Europe's bank stress test results this week.
Gold has fallen more than 6 percent since hitting a
lifetime high around $1,264 an ounce in late June on worries
the debt crisis in Europe would spread.
But dealers expected more losses if the results of the
European Union examination of banks due on Friday show
generally positive results for Greece, Italy and Ireland and a
few failures in Portugal and Spain as expected. []
"If it's positive for risk assets, it would definitely dent
demand for gold. I would look at on the downside of probably
$1,175 but I don't see it dropping below that," said Ong Yi
Ling, investment analyst at Phillip Futures in Singapore.
"I think even if we see buying for gold today, it wouldn't
be too significant because people are really looking towards
that big event at the end of the week."
Gold <XAU=> fell $7.60 to $1,184.20 by 0532 GMT, within
sight of a two-month low at $1,175.35 hit on Tuesday. Comments
from Federal Reserve Chairman Ben Bernanke that the U.S.
economy faced "unusually uncertain" prospects also weighed on
gold, but spurred a rally in bonds.
For a 24-hour spot gold technical outlook, see:
http://graphics.thomsonreuters.com/WT/20102207094113.jpg
In the physical sector, jewellers waited for more declines
in prices after snapping up gold bars earlier this week ahead
of the festive season in India and Indonesia, but dealers in
Tokyo saw steady demand from the electronics sector.
Stocks dropped across Asia on concerns about the health of
the U.S. economy while the euro regained strength on growing
optimism major listed banks could pass the EU stress tests.
[] []
U.S. gold futures for August delivery <GCQ0> fell 0.55
percent to $1,185.3 an ounce.
"Gold is likely to be bound in a tight range, before the
results of stress tests on European banks are released
tomorrow, which may give a direction on the future move of
gold," said Li Ning, an analyst at Shanghai CIFCO Futures.
Silver <XAG=> tracked gold lower, while platinum <XPT=> and
palladium <XPD=> were under pressure from weaker equities.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said holdings were unchanged at 1,308.128
tonnes. The holdings hit a record at 1,320.436 tonnes on June
29. []
Oil slid for a second day on Thursday, a day after Bernanke
rekindled unease across financial markets about the pace of
economic recovery, while rising U.S. inventories also kept
prices in check. []
Precious metals prices at 0532 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1184.20 -7.60 -0.64 8.08
Spot Silver 17.65 -0.12 -0.68 4.87
Spot Platinum 1507.65 -13.35 -0.88 2.77
Spot Palladium 444.55 -4.95 -1.10 9.63
TOCOM Gold 3303.00 -39.00 -1.17 1.35
36946
TOCOM Platinum 4228.00 -23.00 -0.54 -3.49
10946
TOCOM Silver 49.80 -0.20 -0.40 -3.68
353
TOCOM Palladium 1251.00 -8.00 -0.64 7.38
123
Euro/Dollar 1.2779
Dollar/Yen 86.47
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Ed Lane)
