By Miho Yoshikawa
TOKYO, June 2 (Reuters) - Spot gold hovered around $885 on
Monday sticking close to levels of late last week, as crude oil
and the dollar failed to provide fresh incentives, trapping the
precious metal's price within a narrow range.
Investors and bargain hunters chased gold on Friday, helping
to lift prices off an intraday two-week low to end up more than 1
percent, spurred by a weaker dollar and oil gains.
The dollar inched up against the euro on Monday ahead of a
slew of key U.S. economic data, while crude oil prices were
little changed at under $128.
"I don't see anything new in the market so far," said Akira
Doi, managing director at Daiichi Commodities Co Ltd.
Spot gold <XAU=> was at $883.80/884.80 an ounce at 0356 GMT
after moving between $883.85 and $887.95, versus $885.95/887.55
late in New York.
Gold futures for August delivery <GCQ8> on the COMEX division
of the New York Mercantile Exchange inched down to $886.70 an
ounce in electronic trading, compared with the New York
settlement of $891.50.
Doi took note of gold's inability to maintain a level above
$930, a recent high marked in late May, which seemed to suggest
that the precious metal lacked the strength to climb much further
for now.
"We are nearing the summer season, it's June and India's peak
demand season is at an end ... and I think prices will trade
around $880-$930 for the time being barring any major news," he
said.
Gold demand is strong in India, a top bullion buyer, during
the Hindu marriage season, which runs from January to May, as
parents buy jewellery as gifts to their daughters for financial
security in a crisis.
The third quarter is normally a slow demand period for gold.
Benchmark April gold on the Tokyo Commodity Exchange closed
the morning session up 27 yen per gram at 3,026 yen, after
trading between 3,024 yen and 3,036 yen.
Gold is often bought as an inflation hedge when oil prices
are high, while a weaker dollar makes the precious metal cheaper
for holders of other currencies.
U.S. light, sweet crude oil futures <CLc1> were up 10 cents
at $127.45 a barrel, as traders tracked the dollar for direction
and a tropical storm closed two Mexican oil ports.
Investors were also likely to keep a close watch on the
currency market ahead of key U.S. economic data for clues on the
future course of U.S. monetary policy.
The dollar edged up against the euro on Monday, while many
investors sat tight as they awaited the release of the data.
The euro edged down 0.1 percent from late Friday in New York
to $1.5535 <EUR=>.
The dollar was at 105.46/48 yen <JPY=> against 105.50/54 in
late U.S. trade.
Spot platinum <XPT=> inched up to $1,993/2,003 versus
$1,987.50/2,007.50.
Spot silver <XAG=> eased to $16.70/16.79 an ounce versus
$16.80/16.86, while spot palladium <XPD=> climbed to $432/437
versus $429/437.
Precious metals prices at 0404 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 882.85 -3.05 -0.34 38.88
Spot Silver 16.70 -0.13 -0.77 29.96
Spot Platinum 1990.00 -9.00 -0.45 75.80
Spot Palladium 432.00 0.50 +0.12 30.12
TOCOM Gold 3018.00 19.00 +0.63 23.44 13918
TOCOM Platinum 6580.00 61.00 +0.94 54.68 12524
TOCOM Silver 572.30 2.90 +0.51 16.01 306
TOCOM Palladium 1485.00 29.00 +1.99 18.33 229
Euro/Dollar 1.5538
Dollar/Yen 105.44
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
