* Gold falls as speculators book profits
* Investors await U.S. payrolls data
* ETF holdings hit new record
(Updates prices)
By Lewa Pardomuan
SINGAPORE, Feb 6 (Reuters) - Gold inched down Friday as
speculators booked profits from gains in New York, while record
high exchange-traded fund holdings underlined strong investor
interest amid continuing turmoil in the financial sector.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings rose 7.7 tonnes to another
record of 867.19 tonnes on Feb. 5 -- the third increase this
week. []
Gold <XAU=> was trading at $913.30 an ounce, down $0.45
from New York's notional close on Thursday, when it hit a
session high of $924, not far from last week's near four-month
high of $930.40 and within sight of a record of $1,030.80 hit
last March.
"In short, gold is heading much higher, but not without
more struggle and occasional disappointment for those looking
for a speedy ascent," said Jeffrey Nichols, managing director
of American Precious Metals Advisors.
"Further out, over the next year or two, I have no doubt
that gold will move to new historic highs well above the $1,030
level touched a year ago in March."
For a graphic of gold holdings by the ETF, click on:
https://customers.reuters.com/d/graphics/MKTS_SPDRGLD0609.jpg
Gold has rebounded more than 30 percent since tumbling to a
13-month low of $680.80 in late October, driven by a recovery
in oil prices and steady investment demand, but profit taking
capped gains and purchases from the jewellery sector also
slowed.
Gold imports by India, the world's main consumer, plunged
more than 90 percent to just 1.2 tonnes in January 2009, from
18 tonnes in the same month last year, due to high prices and
ample stocks, the Bombay Bullion Association said.
[]
But Nichols said buyers in India could eventually adjust to
the high prices, which could spur a partial recovery in demand.
"But if Indian buying does not pick up soon, there could be
more metal available in world markets to satisfy the rise in
U.S. and European investment demand and correspondingly less
upward pressure on the price of gold," he said.
Dealers said gold's recent rally was supported by an
increase of overall allocation from investment portfolios in
the yellow metal, whose appeal as an alternative investment has
been boosted by volatile stock markets and fears of global
economic recession.
Economic news was bleak on both sides of the Atlantic on
Thursday as German manufacturing suffered its biggest decline
since 1990 and applications for U.S. jobless benefits soared to
a 26-year high. []
In the physical sector, dealers noted selling by Japanese
investors after an overnight gain in prices. Gold bars were
offered at a discount of 50 U.S. cents an ounce to spot London
prices, having been quoted on par earlier this week.
"I suppose the general public is still keen to sell their
gold because of the high prices," said a physical dealer in
Tokyo. "We are offering gold bars at discount now."
In other markets, the dollar edged down against the yen in
cautious trade before jobs data that may paint an even gloomier
picture of the U.S. labour market. The euro inched down at
$1.2772. []
The Nikkei <> gained 1.6 percent on Friday on a softer
yen, while oil fell below $41 a barrel as the focus turned from
a stock market rally to bleak economic news. []
U.S. non-farm payrolls probably shed 525,000 jobs in
January following 524,000 jobs lost the previous month, a
Reuters poll showed. The unemployment rate is seen at 7.5
percent, compared with 7.2 percent a month earlier.
[]
PRICES
Metal Last Change Pct chg Day ago pct MA 30
RSI
Spot gold $913.30 -$0.45 -0.05% +1.82% $860.10
65
Spot silver $12.83 -$0.01 -0.08% +7.10% $11.29
79
Spot plat $977.50 $4.50 +0.46% +1.30% $960.13
59
COMEX gold $913.90 $0.30 +0.03% +1.36% $870.47
63
TOCOM gold 2,679 64 +2.45% +3.76% 2,516
61
TOCOM plat 2,867 82 +2.94% +4.07% 2,729
55
Currencies
Euro/dlr $1.279 -$0.034 -2.60% -2.90%
Dlr/yen 90.92 0.54 +0.60% +2.25%
(Editing by Ben Tan)
