* Market seen at crossroads as $1,000 approaches
* Eyes on BoE, ECB rate decisions
* SPDR gold ETF holdings <XAUEXT-NYS-TT> ease from record
By Chikako Mogi
TOKYO, June 4 (Reuters) - Gold prices rose on Thursday as
investors bought back the metal after a round of profit-taking
the previous day, when the U.S. currency climbed and oil prices
tumbled.
Both spot gold and futures fell about 2 percent on Wednesday
as commodities retreated broadly led by heavy losses in oil, the
dollar's sharp recovery amid weaker U.S. economic indicators and
steep losses on Wall Street. Investors returned to dollar assets
as worries about the outlook for the economy and stock market
declines dampened their appetite for risk.
On Thursday the dollar was steady against the yen and euro.
[]
"We are getting a bit of a bounce after the large sell-off
yesterday, plus the dollar is a bit weaker after the rally on
Wednesday," said Adrian Koh, an analyst at Phillip Futures.
Spot gold <XAU=> rose 0.4 percent to $966.30 per ounce from
New York's notional close of $962.15 per ounce. It earlier fell
as low as $961.20.
Gold last climbed above $1,000 on Feb. 20.
U.S. gold futures for August delivery <GCQ9> rose 0.2 percent
to $967.70 per ounce from Wednesday's $965.60 on the COMEX
division of the New York Mercantile Exchange. It settled down 1.9
percent on Wednesday, the biggest one-day percentage fall for the
August contract since April 6.
Prices are hovering just below $1,000, where selling
incentives for customers counter funds buying to hit options
triggers that would lift prices above the key four-digit level.
Inflation worries and the dollar's weakness have supported a
bullish view on gold, while bears said short-term funds were
driving up the market so any gains would not last long.
[]
"I still think it's possible (to hit $1,000), but the markets
are currently at an important crossroads and any further selling
pressures could change that," Koh said, noting that if the market
can hold above $960, which was the low for Wednesday's sell-off,
then the $1,000 level was still realistic.
The holdings of the world's largest gold-backed
exchange-traded fund, the SPDR Gold Trust <GLD>, eased 1.53
tonnes to 1,132.50 tonnes as of June 3, reflecting investor
selling. On June 1, holdings rose to a record 1,134.03 tonnes.
[]
Traders said they were watching interest rate decisions later
on Thursday by the Bank of England and the European Central Bank.
Precious metals prices at 0524 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 966.25 4.10 +0.43 16.04
Spot Silver 15.32 0.02 +0.13 3.72
Spot Platinum 1231.00 -2.50 -0.20 -19.01
Spot Palladium 239.50 -1.00 -0.42 -34.92
TOCOM Gold 3000.00 -53.00 -1.74 -1.96 38552
TOCOM Platinum 3833.00 -35.00 -0.90 -28.21 13049
TOCOM Silver 473.00 -19.60 -3.98 -12.57 516
TOCOM Palladium 752.00 -24.00 -3.09 -44.34 435
Euro/Dollar 1.4165
Dollar/Yen 96.16
TOCOM prices in yen per gram, except TOCOM silver which is priced
in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Risa Maeda; Editing by Hugh Lawson)
