TOKYO, Dec 21 (Reuters) - Gold prices inched up on Monday but
the dollar's firmness curbed investor appetite for the metal amid
light trading ahead of the Christmas holidays.
FUNDAMENTALS
* Spot gold <XAU=> was up 0.2 percent at $1,114.55 an ounce
as of 0014 GMT, compared to New York's notional close of
$1,112.25.
* U.S. gold futures for February delivery <GCG0> inched up
0.4 percent to $1,115.40 per ounce, compared to $1,111.50 an
ounce on the COMEX division of the New York Mercantile Exchange.
* Gold prices rose on Friday, reversing declines in a choppy
session, but buying related to short covering, inflation worries
and geopolitical tensions trumped selling prompted by
profit-taking and a strong dollar.
* Gold's appeal as a safe-haven play came into focus after
news spread of a dispute between Iran and Iraq, lifting oil
prices as well, which was also supportive for gold as a hedge
against inflation. Iraqi reported that 11 Iranian troops entered
Iraqi territory, raising the Iranian flag at a disputed oilfield.
[]
* Noncommercial net long U.S. gold futures positions rose 0.7
percent to 256,108 lots in the week to Dec. 15 from 254,429 lots,
a weekly report by the U.S. Commodity Futures Trading Commission
showed. []
* The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,126.611 tonnes as
of Dec. 18, up 6.097 tonnes or 0.5 percent from the previous
business day. Holdings hit a record high of 1,134.03 tonnes on
June 1. []
MARKET NEWS
* Nikkei was up 0.7 percent []
* U.S. stocks rose on Friday in choppy trade as quarterly
results from Oracle and Research In Motion lifted the Nasdaq more
than 1 percent, but the U.S. dollar's climb curbed gains in both
the Dow and the S&P 500. []
* The dollar held firm against the euro on Monday, after
rising against most major currencies late last week for its best
weekly gain against the euro since April. Investors, who sold the
U.S. currency for most of 2009, bought it back as the year-end
neared. []
* Strength in the U.S. currency usually curbs gold's appeal
as an alternative investment, making the precious metal more
expensive for holders of other currencies.
DATA EVENTS
* The following data is expected on Monday: <ECON>
- Chicago Federal Reserve national activity index for
November. (1230 GMT)
- U.S. Federal Reserve Bank of Chicago President Charles
Evans speaks. (1500 GMT)
- Federal Reserve Bank of Minneapolis economists Toby Madden
and Rob Grunewald speak iva teleconference. (1600 GMT)
RELATED NEWS
>Gold rises on inflation, safe-haven bid []
>Iraq demands Iran withdraw troops from oilfield[]
>Oil rises on Iran-Iraq tension, US cold snap []
>Namibia Q3 uranium output up y/y, diamond low []
PRICES
Precious metals prices at 0018 GMT
Metal Last Change Pct chg Day ago pct MA 30 RSI
Spot gold $1114.70 $2.45 +0.22% -3.73% $1146.89 42
Spot silver $17.38 $0.12 +0.70% -4.40% $18.04 40
Spot plat $1429.50 $2.00 +0.14% +0.11% $1436.91 47
COMEX gold $1115.90 $2.30 +0.21% +0.40% $1145.96 42
TOCOM gold 3,249 35 +1.09% +1.53% 3,290 48
TOCOM plat 4,176 26 +0.63% +0.89% 4,124 58
Currencies
Euro/dlr $1.434 $0.004 +0.28% +0.05%
Dlr/yen 90.30 -0.02 -0.02% -0.15%
(Reporting by Chikako Mogi; Editing by Edwina Gibbs)
