* Gold needs fresh impetus to climb higher, traders say
* More central bank demand expected after Bangladesh buy
* Dollar's sharp gains on yen pressured gold
* Coming next wk: US retail sales, PPI, CPI, current acct
(Recasts; updates prices, comment; changes dateline from
LONDON)
By Carole Vaporean
NEW YORK, Sept 10 (Reuters) - Gold prices steadied at
moderately lower levels below $1,250 an ounce on Friday as the
yen slid against the dollar and investors continued to unwind
safe-haven plays made this week, but analysts said the IMF's
late Thursday gold sale lent support.
Spot gold <XAU=> at $1,245.85 an ounce was down by 3:38
p.m. EDT (1938 GMT) from Thursday's closing bid at $1,248.27 an
ounce. It fell to $1,236.55 an ounce, its lowest in a week.
U.S. December gold futures <GCZ0> eased $4.40 to end at
$1,246.50 an ounce on the COMEX division of the NYMEX. The
range extended down to $1,237.90, its lowest in 10 days.
Earlier this week, bullion touched its highest in two
months, above $1,262 an ounce, on renewed worries about the
European banking sector. But by Friday, some investors were
unwinding that safety play, not wanting to carry those
positions over the weekend.
The yen's slide against the dollar also hurt gold. Both the
euro and dollar rallied against the yen, as strong import data
from China raised optimism about global economic growth and
prompted higher risk tolerance. []
China's imports leaped in August, boding well for a
strengthening of domestic demand in an economy that has become
a major driver of global growth. [].
Some gold players put on stop-loss sell orders at lower
levels over concerns about when the European Central Bank will
sell its annual 500 tonnes of gold, which happens every
September.
"Last year, not all of the participating banks used up what
they were allocated to sell. That's the reason for some
trepidation. They might sell it this year, because we're near
(record) highs. And the (ECB) sale could come at any time,"
said George Gero, vice president at RBC Capital Markets Global
Futures in New York.
A gold sale late Thursday by the International Monetary
Fund gave the precious metal an underpinning. Many analysts
said they saw the IMF sale as an indication that central banks
still want to own gold.
The IMF said late on Thursday that it sold 10 tonnes of
gold to the central bank of Bangladesh this week, its first
sale after a 10-month hiatus, as a volatile U.S. currency draws
holders to bullion. []
In the near term, some traders see gold in a range at lower
levels between $1,225 and $1,245 an ounce.
"There hasn't been enough genuine demand around," said
Simon Weeks, head of precious metals at the Bank of Nova
Scotia. "The ETFs are struggling to gain any decent investment,
and the physical market's gone quiet."
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said its holdings slipped to 1,293.531
tonnes by Sept. 9 from 1,294.442 tonnes by Sept. 3. The
holdings hit a record 1,320.436 tonnes on June 29. []
Gold jewelry sales in Italy, the European Union's top
market by consumption, fell 23.5 percent in the second quarter
and are likely to fall 18 percent for the full year, a World
Gold Council official said on Friday. []
UPWARD TREND IN PLACE
Interest by Asian central banks in bullion is a factor that
could support prices in the long term, analysts said. Industry
experts expect more central banks to follow the move by
Bangladesh.
"Gold is one of the few asset classes that is almost
universally permissible by the investment guidelines of
emerging countries' central banks," said Natalie Dempster,
director, government affairs, at the World Gold Council.
Spot silver <XAG=> was nearly even at $19.80 an ounce from
$19.79 late in New York on Thursday. It touched $20.14 an ounce
earlier this week, its highest since March 2008.
Palladium <XPD=> was lower at $517.50 an ounce than $518.73
an ounce previously, while platinum <XPT=> declined to $1,540
an ounce from Thursday's $1,548.28 an ounce.
Prices at 2:35 p.m. EDT (1835 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US gold <GCZ0> 1246.50 -4.40 -0.4% 13.7%
US silver <SIZ0> 19.802 -0.012 0.0% 17.6%
US platinum <PLV0> 1542.50 -10.80 -0.7% 4.9%
US palladium <PAZ0> 517.55 -3.05 -0.6% 26.6%
Gold <XAU=> 1244.30 -3.97 -0.3% 13.5%
Silver <XAG=> 19.82 0.03 0.2% 17.7%
Platinum <XPT=> 1538.00 -10.28 -0.7% 4.9%
Palladium <XPD=> 517.50 -1.23 -0.2% 27.6%
Gold Fix <XAUFIX=> 1246.50 -2.25 -0.2% 12.9%
Silver Fix <XAGFIX=> 19.90 -7.00 -0.4% 17.1%
Platinum Fix <XPTFIX=> 1545.00 8.00 0.5% 5.4%
Palladium Fix <XPDFIX=> 518.00 5.00 1.0% 28.9%
(Additional reporting by Lewa Pardomuan in Singapore and
Humeyra Pamuk in London; Editing by Walter Bagley)
