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* Gold regains footing on short covering
* For technical report on gold; click []
* Coming Up: U.S. May retail sales; 1230 GMT
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By Lewa Pardomuan
SINGAPORE, June 11 (Reuters) - Gold rebounded on short
covering on Friday after falling around 1 percent in the
previous session, while a rise in ETF holdings to another
record showed bullion still attracted buying from investors.
But gold was at the mercy of movements in equity and
currency markets, with rallies in shares likely to curb gains.
Gold hit a lifetime high $1,251.20 earlier this week on fears
the euro zone's sovereign debt crisis may spread.
Spot gold <XAU=> was at $1,219.15 an ounce by 0547 GMT, up
$3.35 from New York's notional close on Thursday, when it
slipped after a rally in Wall Street curbed safe-haven demand.
For a graphic of the spot gold technical outlook, click:
http://graphics.thomsonreuters.com/gfx/WT_20101106083317.jpg
"I don't really see gold depreciating very soon to a great
extent," said Darren Heathcote, head of trading at Investec
Australia in Sydney.
"But it wouldn't surprise me to see it ease back a little
more if we see another couple of days of positive news in the
stock market," he added.
U.S. gold futures for August delivery <GCQ0> fell $1.3 an
ounce to $1,220.9 an ounce, extending a drop on Thursday as
gains in the euro eased fears about euro zone credit contagion.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said its holdings rose to a lifetime high
at 1,306.137 tonnes as of June 10. []
Japan's benchmark Nikkei average <> rose 2 percent on
Friday after U.S. stocks posted their best day in the last nine
on Thursday in response to signs of health in the euro debt
market. [] []
"It's too difficult to say with any certainty that the
market will go one way or the other, but certainly I would like
to think that we are going to get a period of stability and
probably see gold ease back a little bit," said Heathcote.
"If it did, we'll probably be targeting somewhere down around
the $1,175 area," said Heathcote, referring to a low seen in
May.
The euro ran into headwinds above $1.21 on Friday, as
profit-booking set in when it failed to push through hefty
resistance, and investors took advantage of a lack of surprises
in Chinese data to book gains in the Aussie dollar. []
But some investors breathed a sigh of relief after European
Central Bank President Jean-Claude Trichet said three-month
emergency loans to banks would continue until September and
Germany's high court rejected efforts to block German
guarantees for euro zone financial aid. []
[] "There's a bit of bargain hunting but I
think if we see more rebound in stocks, then gold will drift
down," said a dealer in Hong Kong.
"I don't think there's buying from jewellers. People are
also waiting for more clues, whether the euro will continue to
stabilise."
Oil slid on Friday following data showing
weaker-than-expected Chinese industrial output for May, though
investor confidence in the country's growth helped prices hold
above $75, headed for a weekly gain of 5 percent. []
Precious metals prices at 0547 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1219.15 3.35 +0.28 11.27
Spot Silver 18.26 0.07 +0.38 8.50
Spot Platinum 1537.85 3.85 +0.25 4.83
Spot Palladium 448.90 -1.60 -0.36 10.70
TOCOM Gold 3599.00 -4.00 -0.11 10.43
34027
TOCOM Platinum 4566.00 61.00 +1.35 4.22
11925
TOCOM Silver 54.20 0.50 +0.93 4.84
229
TOCOM Palladium 1332.00 5.00 +0.38 14.33
168
Euro/Dollar 1.2108
Dollar/Yen 91.59
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
