(Updates prices)
By Miho Yoshikawa
TOKYO, June 2 (Reuters) - Spot gold hovered narrowly around
$885 on Monday, sticking close to levels of late last week,
although it briefly dipped a touch after crude oil slipped,
dulling the precious metal's appeal as an inflation hedge.
Spot gold <XAU=> was at $884.80/885.80 an ounce at 0900 GMT
after moving between $881.10 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
$887.40 an ounce, compared with the New York settlement of
$891.50.
Akira Doi, managing director at Daiichi Commodities Co Ltd,
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 for their daughters to provide
financial security in a crisis.
The third quarter is normally a slow demand period for gold.
Benchmark April gold on the Tokyo Commodity Exchange
finished at 3,004 yen, up 5 yen per gram, after trading between
2,999 yen and 3,036 yen.
Crude oil prices fell as the dollar edged up and traders
shrugged off the closure of two Mexican oil ports due to a
tropical storm.
U.S. light, sweet crude oil futures <CLc1> fell more than $1
a barrel, extending last week's nearly $5 tumble, although it
later recovered.
It was trading at around $126.70, down from Friday's
settlement and marking a further retreat from the record high
above $135 reported in late May.
The dollar edged up on Monday, ahead of this week's U.S.
data which is being awaited by the market to see if it will
reinforce expectations for higher interest rates.
In other precious metals, spot platinum <XPT=> fell to
$1,982/1,992 from $1,987.50/2,007.50 in late New York.
Spot silver <XAG=> also eased to $16.74/16.80 an ounce
versus $16.80/16.86, while spot palladium <XPD=> slipped to
$425.50/433.50 versus $429/437.
Precious metals prices at 0909 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 886.80 0.90 +0.10 39.50
Spot Silver 16.87 0.04 +0.24 31.28
Spot Platinum 1990.50 -8.50 -0.43 75.84
Spot Palladium 429.50 -2.00 -0.46 29.37
TOCOM Gold 3004.00 5.00 +0.17 22.86 36689
TOCOM Platinum 6538.00 19.00 +0.29 53.69 26710
TOCOM Silver 571.00 1.60 +0.28 15.75 585
TOCOM Palladium 1463.00 7.00 +0.48 16.57 586
Euro/Dollar 1.5556
Dollar/Yen 104.79
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
