* Dollar edges up against the euro, pressuring gold
* SPDR gold ETF reports near 1-tonne inflow
* U.S. manufacturing, oil stockpile data eyed
(Updates prices)
By Jan Harvey
LONDON, Dec 30 (Reuters) - Gold edged down in Europe on
Wednesday as a rise in the value of the dollar curbed interest
in the precious metal as an alternative asset and made it more
expensive for holders of other currencies.
Trading in Europe, the United States and some parts of Asia
was thinned by the Christmas and New Year holidays, with many
market participants away until Jan. 4.
Spot gold <XAU=> was bid at $1,090.60 an ounce at 1202 GMT,
against $1,096.55 late in New York on Tuesday. U.S. gold futures
for February delivery <GCG0> on the COMEX division of the New
York Mercantile Exchange fell $6.60 to $1,091.50 an ounce.
The precious metal's decline is taking spot prices further
from the record high of $1,226.10 an ounce they hit at the
beginning of December after a wave of central bank gold buying.
"The bear pressure is certainly on the market now and the
stronger dollar is curbing any recovery attempts by gold," said
Pradeep Unni, senior analyst at Richcomm Global Services.
"The number of long speculators is slowly and steadily
fading off and formidable resistances at the $1,107-1,110 zones
are repeatedly being used as selling opportunities."
"Despite the low trading activity, a possible slide to
$1,080-1,072 seems more likely in the coming sessions," he said.
The dollar gained against the yen, hitting a two-month high,
and held its ground against the euro as it continued to benefit
from the view the U.S. economy is on course to recover. []
Going into the new year, currency traders are focusing on
when the U.S. Federal Reserve is likely to start tightening
monetary policy.
A spate of better-than-expected data in recent weeks has
lifted expectations a rate rise may come sooner rather than
later. If rates are lifted, it is likely to benefit the dollar,
and consequently weigh on gold.
TRADERS EYE DATA
Among other commodities, oil prices steadied near $79 a
barrel as a decline in U.S. fuel stocks and optimism over the
economic outlook countered the effects of the stronger dollar.
[] []
Gold tends to track crude prices, as the metal can be bought
as a hedge against oil-led inflation.
Traders will be watching economic data due later in the
session for clues as to the next move in the currency and
commodity markets. []
Chicago's Institute of Supply Management releases its index
of manufacturing activity for December at 1445 GMT, with the
Federal Reserve Bank of Kansas City putting out its
manufacturing survey at 1600 GMT.
The U.S. Energy Information Administration will also unveil
its weekly oil and oil products stockpile data at 1530 GMT.
Investment demand for gold was firm, with the world's
largest bullion-backed exchange-traded fund, New York's SPDR
Gold Trust <GLD> reporting an inflow of just under one tonne on
Tuesday. []
Among other precious metals, silver <XAG=> was at $16.91 an
ounce against $17.08, while platinum <XPT=> was at $1,461 an
ounce versus $1,462.
Palladium <XPD=> hit a peak of $393 an ounce, its highest
since July 2008, and was later at $391 against $385.50.
"Silver will look to gold for direction although chart
support is anticipated around recent lows of $16.90/16.76," said
TheBullionDesk.com analyst James Moore.
"Despite the risk of pressure on the platinum group metals
in the short term, expectation physically-backed ETF products
could soon be listed in the United States should limit
substantial price weakness, as both investors and end-users look
for dip buying opportunities," he added.
(Reporting by Jan Harvey; Editing by Anthony Barker)
