* SDPR Gold holdings steady after first rise since late June
* For technicals on gold click []
* Coming up: U.S. business inventories for May at 1400 GMT
By Chikako Mogi
TOKYO, July 14 (Reuters) - Gold steadied on Wednesday after
rising nearly 2 percent the previous day when worries over debt
problems in the euro zone bolstered the metal's appeal as a haven
from risk and a currency alternative, but high price levels may
prompt selling.
Market players appear to have found a consensus that prices
below $1,200 were a bargain, but have yet to unconditionally
accept levels sustained above $1,250.
Investors may be reluctant in the near term to aggressively
buy gold at current levels, but worries over the global economy,
expectations the Federal Reserve will keep its extremely
accommodative monetary policy for some time to come, and concerns
over euro zone debt problems spreading are underpinning prices.
Compared to three months ago, support levels have risen by
about $50 and it is just a matter of time before a new upward
range is set firmly, said Koichiro Kamei, managing director at
Tokyo-based researcher Market Strategy Institute Inc.
"Gold's underlying appeal as a currency alternative and a
hedge against risks is deep-rooted and will stay so over the
longer term, as there is nothing to threaten it imminently," he
said.
"Another huge support for the market is a wider investor
base, as shown in growth in investment in exchange-traded funds,"
Kamei said.
Spot gold <XAU=> was at $1,211.60 per ounce as of 0230 GMT,
little changed from late New York levels of $1,210.65 an ounce.
Gold prices hit record highs in late June as concern over
European sovereign debt levels and instability in the broader
financial markets helped sustain a boom in safe-haven investment.
Spot gold hit a record high of $1,264.90 on June 21. It rose
to a high of $1,217.60 an ounce on Tuesday after debt rating
agency Moody's cut Portugal's rating.
U.S. gold futures for August delivery <GCQ0> were at $1,212
per ounce, compared to $1,213.50 an ounce on the COMEX. It
reached $1,218.80 on Tuesday, its highest since July 1.
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Holdings by the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust <GLD.P>, stood unchanged at 1,314.819
tonnes as of Tuesday, after rising for the first time since late
June on Monday. A small rise in volume sugggested a cautious
stance by investors to buy at current levels. []
On the other hand, the world's largest silver-backed
exchange-traded fund, the iShares Silver Trust <SLV>, said its
holdings climbed to 9,185.29 tonnes as of July 13, up 33.51
tonnes or 0.4 percent from Monday. []
The euro firmed near 2-month highs at $1.2720 <EUR=>, having
jumped nearly 1 percent the day before. Easing concerns about
funding pressure in the euro zone and bullish charts technicals
were likely to support the single currency. []
The Nikkei average <> extended gains to rise 2.8 percent
by the end of morning trade in Tokyo on Wednesday, taking its cue
from a rally in U.S. stocks. []
Among other precious metals, spot platinum <XPT=> edged up
0.4 percent $1,531 per ounce from New York's notional close of
$1,524.50.
Precious metals prices at 0235 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1211.70 1.10 0.09 10.59
Spot Silver 18.25 0.05 0.27 8.44
Spot Platinum 1528.00 3.50 0.23 4.16
Spot Palladium 462.50 -0.50 -0.11 14.06
TOCOM Gold 3473 49.00 1.43 6.57 25337
TOCOM Platinum 4408 61.00 1.40 0.62 9809
TOCOM Silver 53 1.40 2.72 2.13 331
TOCOM Palladium 1331 22.00 1.68 14.25 176
Euro/Dollar 1.2712
Dollar/Yen 88.8300
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Michael Watson)
