* Focus on whether physical demand picks up after holidays
* SPDR Gold holdings unchanged since Feb 5
By Chikako Mogi
TOKYO, Feb 16 (Reuters) - Gold prices rose on Tuesday,
staying above $1,100 per ounce as investors remained risk averse
on concerns about Greece's fiscal crisis, although trading was
subdued with many Asian players away for the Chinese new year.
Price moves were exaggerated in Asia as there were so few
market participants around, traders said.
"Gold prices are firmer in thin trade, with the price uptick
in part triggered by stops being hit around $1,103.00," said
Yuichi Ikemizu, Tokyo branch manager for Standard Bank.
"There is no particular reason for the market's firmness.
There was some indication of short positions being squeezed, but
it's very thin and prices are likely to stay firm given a lack of
sellers," he said.
Hong Kong and Singapore markets resume trading on Wednesday,
but markets in mainland China will be closed until next Monday.
Spot gold <XAU=> was up 0.8 percent at $1,108.90 an ounce as
of 0605 GMT after rising as high as $1,109.55.
U.S. gold futures for April delivery <GCJ0> climbed to
$1,109.50 per ounce from London's Monday prices of around
$1,100.00, and were up 1.4 percent from Friday's New York levels.
Gold extended gains as the euro edged higher against the
dollar after hitting several stops.
U.S. markets were closed on Monday for Presidents Day.
Gold held near $1,100 an ounce on Monday, lifted by concerns
over the outlook for the currency market as traders wait to see
if a meeting of Eurogroup ministers will result in more support
for debt-laden Greece.
Gold priced in euros <XAUEUR=R> rose to a record high 813.26
euros an ounce on Tuesday. The previous record was 812.43 euros
an ounce, marked on Dec. 3.
The euro remained near nine-month lows against the dollar on
Tuesday, as the outcome of a meeting of euro zone finance
ministers failed to instil confidence that Greece's debt problems
will be resolved quickly. []
Gold, which typically falls when the dollar strengthens
because a higher dollar makes dollar-denominated commodities
costlier for holders of other currencies, was resilient as
investors looked to bullion's appeal as a safe-haven asset.
Ikemizu said one near-term focus was on whether physical
buying will resume when participants return from holidays.
"When gold prices fell well below $1,100, we saw very strong
appetite from physical buyers in Asia who bought gold in large
volumes. We need to see if they regard the current levels as
reasonable," he said.
Investment flows were slow, with holdings at the world's
largest gold-backed exchange-traded fund, SPDR Gold Trust <GLD>,
unchanged at 1,106.378 tonnes as of Feb. 15. The holdings have
remained steady since Feb. 5. []
Trading was lacklustre for the two exchange-traded funds
(ETFs) tracking futures contracts on the Tokyo Commodity
Exchange, which debuted on the Osaka Securities Exchange on
Monday.
Total trading volume for Mizuho Gold ETF <1683.OS>, which
tracks TOCOM gold futures, was about 670,950 yen ($7,453) as of
0600 GMT, only about 15 percent of the trading volume on its
inaugural day.
Total volume for NF Platinum Index <1682.OS>, which tracks
TOCOM platinum futures and also listed on the OSE on Monday, was
about 4.5 mln yen ($49,990), about 45 percent of the volume on
its first trading day.
Precious metals prices at 0604 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1108.75 8.25 +0.75 1.19
Spot Silver 15.73 0.21 +1.35 -6.54
Spot Platinum 1528.00 15.50 +1.02 4.16
Spot Palladium 425.00 6.50 +1.55 4.81
TOCOM Gold 3210.00 34.00 +1.07 -1.50 57020
TOCOM Platinum 4394.00 40.00 +0.92 0.30 11742
TOCOM Silver 46.00 0.50 +1.10 -11.03 608
TOCOM Palladium 1220.00 21.00 +1.75 4.72 239
Euro/Dollar 1.3645
Dollar/Yen 89.77
TOCOM prices in yen per gram.
($1=90.01 Yen)
