* Dollar hits session highs vs euro after German ZEW data
* SPDR Gold Trust ETF holdings edge higher
* GFMS sees gold prices correcting before push higher
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, Sept 15 (Reuters) - Gold eased in Europe on Tuesday
as the dollar hit session highs versus the euro after German ZEW
data, but held near the $1,000 an ounce mark amid hopes the
metal may be consolidating before a further push higher.
Spot gold <XAU=> to $997.10 an ounce at 0940 GMT against
$998.65 late in New York on Monday.
Prices have held onto the bulk of gains that last week took
the metal to 18-month highs of $1,011.55 an ounce as investors
bought bullion as a hedge inflation and dollar weakness.
The market waited for impetus for a fresh push higher, with
both the currency and physical markets closely eyed.
"The euro has come down against the dollar, so the
traditional drivers of gold are slightly dampening the upside,"
said Peter Fertig, a consultant at Germany's Quantitative
Commodity Research. "(But) we are now entering a period when
gold is usually stronger on a seasonal basis."
"Typically the dollar is weak against the euro in the last
quarter, so seasonal factors are still arguing that this is just
a consolidation, and that gold is likely to move further upwards
towards all-time highs."
Gold eased as the dollar firmed against the euro <EUR=>,
recovering from the 2009 low of $1.4654 it hit on Monday. The
euro hit a session low against the U.S. currency after soft
German ZEW eocnomic sentiment data. []
Dollar strength dampens interest in bullion as an
alternative asset, and makes it more expensive for non-U.S.
investors. []
Downward pressure on the precious metal was eased, however,
by a recovery in oil prices, which edged lower in earlier trade
on concerns over an inventory build in the United States. []
Gold tends to track moves in crude prices, as it can be
bought as a hedge against oil-led inflation.
CORRECTION EYED
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange eased $2.30 to
$998.80 an ounce.
In an update to its 2009 Gold Report, metals consultancy
GFMS said late on Monday that gold prices are likely to correct
after their recent run higher, but could rebound as high as
$1,100 an ounce in the next six months. []
"The market has been driven up very much by short term
speculation," said GFMS chairman Philip Klapwijk. "We've seen
net long positions on the COMEX reach record levels on the 8th
of this month and position length has only grown since then."
"On the other hand, I think the dollar is looking a little
bit oversold," he added. "I think we are going to see a fairly
significant correction take place in the gold price in the short
term."
Gold bugs were cheered by a 1.221-tonne rise in holdings of
the largest gold-backed exchange-traded fund, New York's SPDR
Gold Trust <GLD>, after five sessions of stability. []
They are also hoping for an uptick in jewellery demand from
key markets such as India and the Middle East, which has been
weak this year as local gold prices in many areas rose.
Among other precious metals, silver <XAG=> was at $16.47 an
ounce against $16.51. Platinum <XPT=> was at $1,303.50 an ounce
versus $1,313.50 and palladium <XPD=> at $290 versus $291.
Platinum has held firm despite the news that a strike has
been averted at major producer Anglo Platinum in South Africa.
"That platinum prices remained stable even after the removal
of a strike threat may be an indication of underlying bullish
sentiment," said HSBC analyst James Steel in a note.
(Reporting by Jan Harvey; Editing by William Hardy)
