(Updates prices to Tokyo close, adds comments)
By Lewa Pardomuan
SINGAPORE, April 8 (Reuters) - Gold held steady near a
one-week high on Tuesday after the dollar's fall against the euro
ignited buying by speculators, helping the metal defy news that
the International Monetary Fund plans to sell some of its gold.
The IMF is the world's third-largest gold holder with 3,217.3
tonnes, but any price dip on its sales would probably be met by
buying by jewellers and investors, said dealers.
Gold <XAU=> hit a high of $925.50 an ounce before trading at
$922.40/923.30 as of 0841 GMT, little changed from $923.70/924.50
late in New York on Monday.
Gold jumped to a one-week high at $929.10 an ounce on Monday
on surging oil -- still well below a record of $1,030.80 hit on
March 17.
"Even though the IMF sells gold, I don't think it will have
much impact," said Ronald Leung, director of Lee Cheong Gold
Dealers in Hong Kong.
"They will do it bit by bit. If they say they have to sell
400 tonnes in one day or one week, there will be a bit of
trouble."
Member countries must still approve the plan to sell 403.3
tonnes of the fund's stocks, and the U.S. Congress will also need
to give the go ahead before any gold sales can begin.
[]
Dealers expected gold to trade in a range with tough
resistance seen around $950 an ounce.
"If it stabilises around $950, we can see a further rise to
$1,000," said Leung of Lee Cheong Gold Dealers, who pegged
support around $915.
The euro <EUR=> rose more than a cent from the day's lows
against the dollar, with the U.S. currency pressured by worries
about a recession and the prospect of further interest cuts by
the Federal Reserve. []
Lower interest rates also boost gold's appeal as an
alternative investment.
"There's still a potential for gold to try $940 today or
tomorrow," said a dealer in Singapore. "Chartwise, the bearish
signals remain but sentiment may change if gold is able to close
higher on Friday."
A Tokyo trader said increasing chances that the U.S.
financial sector is calming down from recent credit woes could
provide a floor for long-term bond yields, making equities and
gold relatively attractive assets to invest in.
"When interest rates fell, investors bought commodities in
general as a hedge against inflation. But if inflation becomes
less of a market concern, gold may be preferred to other
commodities due to its own fundamentals," said Hitoshi Inagawa, a
senior manager at Japanese commodity brokerage Yutaka Shoji Co.
The most active Tokyo gold futures for distant February
delivery <0#JAU:> closed up 1 yen per gram at 3,046 yen.
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange fell $0.2 an ounce to $926.4
an ounce.
Among industry news, gold exploration firm Leyshon Resources'
<LRL.AX> <LRL.L> China mine is expected to start production in
the second half of 2009. []
Spot platinum <XPT=> dipped to $2,015/2,005 an ounce from
$2,030/2,040 late in New York on Friday -- well below a lifetime
high of $2,290 hit on March 4 due to mining disruptions in main
producer South Africa.
The most active Tokyo platinum futures <0#JPL:> fell 56 yen
per gram to 6,483 yen on profit-taking by local investors.
Silver <XAG=> edged down to $17.99/18.04 an ounce from
$18.06/18.11 an ounce. It had risen to $18.22 an ounce on Monday,
its highest since March 28.
Spot palladium <XPD=> was flat at $450/455 an ounce, having
gained to its best level since March 20 at $457 on Monday.
Precious metals prices at 0844 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 923.10 3.10 +0.34 10.86
Spot Silver 18.01 -0.04 -0.22 21.94
Spot Platinum 2015.00 -15.00 -0.74 32.57
Spot Palladium 450.00 0.00 +0.00 22.28
TOCOM Gold 3046.00 1.00 +0.03 -0.46 58641
TOCOM Platinum 6483.00 -56.00 -0.86 21.43 32680
TOCOM Silver 596.50 2.10 +0.35 10.26 1924
TOCOM Palladium 1508.00 16.00 +1.07 11.62 3012
Euro/Dollar 1.5761
Dollar/Yen 101.96
TOCOM prices in yen per gram, except for silver which is in yen
per 10 grams, spot prices in $ per ounce.
(Additional reporting by Risa Maeda in Tokyo; Editing by Michael
Watson)
