* Gold still above $1,200/oz, has rallied 15% since early Nov
* SPDR Gold holdings edge up, iShares Silver at record
By Risa Maeda
TOKYO, Dec 4 (Reuters) - Gold fell on Friday as investors
locked in profits after the precious metal topped $1,220 per
ounce the previous day to mark a record high for the third
straight day.
Caution over the monthly U.S. non-farm payrolls report due at
1330 GMT also kept investors from buying further as gold has
risen more than 15 percent in the past month.
The U.S. report is expected to show payrolls shed fewer jobs
in November than October. Economists polled by Reuters gave a
median estimate of 130,000 jobs lost in November, compared with
190,000 in October, when unemployment hit a 26-year high of 10.2
percent.
Spot gold <XAU=> was at $1,202.35 per ounce at 0240 GMT, down
0.4 percent from New York's notional close of $1,207.10.
It was poised to rise 2 percent on the week, extending gains
for a fifth consecutive week.
U.S. gold futures for February delivery <GCG0> fell 0.9
percent to $1,207.10 per ounce.
"Gold gained momentum as it broke through above $1,200 and
rose to $1,210 and $1,220, triggering a round of short-covering
(to cut further losses)," said Koichiro Kamei, managing director
at financial research firm Market Strategy Institute in Tokyo.
"It doesn't seem to have hit a ceiling yet, but the recent
run-up firstly inspired by the Nov. 2 news of India's central
bank buying has gone quite far. It's now running out of steam,"
he said.
India bought about half the International Monetary Fund's
planned sales of 403.3 tonnes of gold, which fanned views that
more central banks need to diversify their assets into the metal.
[]
Bullion rose to an all-time high $1,226.10 on Thursday,
bringing its gains so far this year to 40 percent, driven by
central bank buying, a weakening dollar and inflation worries.
But further buying was checked by news on Thursday that ECB
President Jean-Claude Trichet laid out a package of decisions on
ending and tightening up the measures it has taken to boost
liquidity to the banking sector. []
Also, the New York Federal Reserve on Thursday conducted a
small reverse repurchase agreement transaction to test the
cash-draining tool.
But many market players maintained their bullish views on
gold as central banks in major economies are expected to keep
interest rates low for a while to support a shaky recovery in the
economy.
A glut of liquidity in the financial system has helped
increase investors' risk tolerance and boost volatility in many
markets, including gold's.
"ECB's move just marks the beginning of an end and has been
widely expected. The recent rally in gold was built on
expectations that the ECB will move ahead of the Fed," said Kamei
of Market Strategy Institute.
A poll of 33 analysts, traders and funds conducted by Reuters
this week found that most believe gold prices are in for a
correction before the end of the year, though the precious
metal's bull run is still believed to be intact. []
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings rose 0.276 tonnes to
1,131.490 tonnes on Thursday. []
That is near a record high of 1,134.03 tonnes hit on June 1.
The world's No.1 silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its silver holdings rose 113.05
tonnes or 1.2 percent to a record 9,514.35 tonnes on Thursday.
[]
Precious metals prices at 0249 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1202.45 -4.65 -0.39 36.62
Spot Silver 18.70 -0.10 -0.53 65.19
Spot Platinum 1479.50 -1.00 -0.07 58.74
Spot Palladium 379.50 -1.00 -0.26 105.69
TOCOM Gold 3425.00 -27.00 -0.78 33.11 60084
TOCOM Platinum 4214.00 -20.00 -0.47 58.90 9893
TOCOM Silver 532.30 -11.70 -2.15 66.71 281
TOCOM Palladium 1082.00 -23.00 -2.08 96.73 263
Euro/Dollar 1.5058
Dollar/Yen 88.27
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
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