* Gold off intraday high despite falling shares
* For the technicals on gold, click: []
* Coming up: U.S. GDP Q1-F; 1230 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, June 25 (Reuters) - Gold dropped on Friday as
early buying linked to crumbling stock markets subsided, but a
rise in ETF holdings to a record high indicated persistent
worries over the global economy.
Investors were also looking to the Group of 20 summit this
weekend in Toronto, where leaders from rich and developing
nations will discuss how to plot the world's emergence from the
worst financial crisis since the Great Depression.
But any disagreements over the best way to ensure both
growth and fiscal responsibility add to global economic
uncertainty, which dealers said could lift gold's safe-haven
appeal. For full coverage, click: []
Spot gold <XAU=> fell 70 cents to $1,243.35 by 0549 GMT,
having hit an intraday high of $1,245.85, heading for a weekly
loss of nearly 2 percent from a record $1264.90 hit on Monday.
Gold gained nearly 1 percent towards $1,250 on Thursday as
U.S. stocks tumbled.
"There's still a lot of uncertainty towards a recovery.
That's why they are putting their bets into gold," said Wong
Eng Soon, investment analyst at Phillip Futures in Singapore,
referring to investor interest in exchange-traded funds.
Gold was still consolidating after hitting an all-time high
this week but a correction was unlikely to send the price below
$1,225 an ounce, said Wong.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P> said its holdings rose to a record high at
1,316.177 tonnes as of June 24 from the previous high of
1,313.135 tonnes set on June 22. []
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For a graphic on SPDR gold holdings and gold price, click:
http://graphics.thomsonreuters.com/10/GLD_SPDR0610.gif
For a graphic on SPDR gold holdings flows, click:
http://graphics.thomsonreuters.com/10/GLD_SPDRVL0610.gif
For a graphic on the 24-hour technical outlook for gold, see:
http://graphics.thomsonreuters.com/gfx/WT_20102506092232.jpg
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"Despite repeated setbacks, it is not looking all that bad
for investors and speculators who are betting on rising gold
prices," said Heraeus Precious Metals in a weekly report.
"At least the general environment has not changed much."
U.S. gold futures for August delivery <GCQ0> fell $1.8 an
ounce to $1,244.1. It had settled around $11 higher on Thursday
as lingering European credit contagion fears pressured equity
markets.
But a lack of demand from the jewellery sector could weigh
on gold, which has struggled to make further headway since
hitting a record high at the start of the week, said dealers.
"It's obvious that gold is losing strength. A switch
reversal after each attempt to break new highs confirms that a
further rise may attract profit taking, although a price dip
could also be limited," said Pradeep Unni, senior analyst and
trader at Richcomm Global Services in Dubai.
Asian stocks on Friday slid for a fourth straight session,
driven by expectations of tighter financial regulation ahead of
the G20 meeting, while the euro was little moved at $1.2330
<EUR=>, retaining gains made on Thursday. [] []
Oil prices edged higher after a U.S. government forecaster
said that a weather system headed towards the oil-rich Gulf of
Mexico may develop into a tropical cyclone. []
Precious metals prices at 0549 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1243.35 -0.70 -0.06 13.48
Spot Silver 18.67 0.02 +0.11 10.93
Spot Platinum 1564.50 7.00 +0.45 6.65
Spot Palladium 471.50 0.50 +0.11 16.28
TOCOM Gold 3591.00 12.00 +0.34 10.19
33131
TOCOM Platinum 4543.00 10.00 +0.22 3.70
16297
TOCOM Silver 54.20 0.00 +0.00 4.84
310
TOCOM Palladium 1379.00 -1.00 -0.07 18.37
315
Euro/Dollar 1.2321
Dollar/Yen 89.54
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Ed Lane)
