* 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 per ounce 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 $1,210.70 per ounce as of 0515 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 an ounce on June
21. It rose to a one-week high of $1,217.60 on Tuesday after
debt rating agency Moody's cut Portugal's rating.
U.S. gold futures for August delivery <GCQ0> were at
$1,211.20 per ounce, compared to $1,213.50 an ounce on the
COMEX. They reached $1,218.80 on Tuesday, their 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 suggested caution by
investors towards 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 held steady near a 2-month high against the dollar
<EUR=>, having jumped nearly 1 percent the day before. Easing
concerns about funding pressure in the euro zone, optimism over
corporate earnings and bullish charts technicals were likely to
support the single currency. []
Japan's Nikkei share average <> extended gains to rise
2.7 percent, with chip-related shares powering higher after
Intel results beat expectations, easing fears about the U.S.
economic recovery. []
Among other precious metals, spot platinum <XPT=> edged down
0.1 percent to $1,522.75 per ounce from New York's notional
close of $1,524.50.
Precious metals prices at 0530 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1211.40 0.75 0.06 10.56
Spot Silver 18.22 0.02 0.11 8.26
Spot Platinum 1525.75 1.25 0.08 4.00
Spot Palladium 461.13 -1.87 -0.40 13.72
TOCOM Gold 3476 52.00 1.52 6.66 29715
TOCOM Platinum 4405 58.00 1.33 0.55 11570
TOCOM Silver 53 1.30 2.53 1.93 380
TOCOM Palladium 1329 20.00 1.53 14.08 181
Euro/Dollar 1.2711
Dollar/Yen 88.9700
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Additional reporting by Risa Maeda; Editing by Joseph Radford)
