* Gold ticks up ahead of U.S. data
* Technicals point downward to $1,220/oz []
* Coming Up: U.S. Durable goods July; 1230 GMT
(Updates prices, adds WGC statement)
By Lewa Pardomuan
SINGAPORE, Aug 25 (Reuters) - Gold rose on Wednesday
despite a slight drop in ETF holdings, with more poor data from
the United States likely to spur buying by investors worried
about the health of the global economy.
But thin volume ahead of the release of U.S. durable goods
data showed the gains were driven mainly by speculators as
higher prices also spurred sales of gold bars in Singapore.
Gold <XAU=> added $2.15 to $1,231.40 an ounce by 0530 GMT,
having dropped to its weakest level in nearly two weeks around
$1,210 on Tuesday before bouncing to more than $1,235 after
sales of previously owned U.S. homes took a record plunge in
July.
Other precious metals were mostly higher, with silver
underpinned by a rise in iShares Silver Trust holdings and
purchases by Indian consumers. []
"It seems that we are still bound in range trading. It's
just a normal market. Nothing special, but still there's some
demand here," said Ellison Chu, manager of precious metals at
Standard Bank Asia in Hong Kong.
U.S. gold futures for December delivery <GCZ0> were hardly
changed at $1,233.1 an ounce after rising as high as $1,237.50
on Tuesday.
For a graphic of the 24-hour gold technical outlook,
click:
http://graphics.thomsonreuters.com/WT/20102508095519.jpg
In theory, economic worries will lift gold's safe haven
appeal in times of uncertainty, but the metal's previous
attempts to hit new highs have been met by profit taking. Gold
struck a lifetime high around $1,264 an ounce in June.
But gold consumption is set to stay strong in 2010, with
India and China providing the main thrust to demand growth and
investment increasing, the World Gold Council said on
Wednesday. [] []
Shares dropped in Asia, with Japan's Nikkei at a 16-month
low, as investors sold riskier assets after a string of poor
U.S. economic data amplified fears the economy could be sliding
into a prolonged period of stagnation or even recession.
[]
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said its holdings slipped to 1,297.948
tonnes by August 24 from 1,299.468 tonnes on August 19. The
holdings hit a record at 1,320.436 tonnes on June 29.
[]
"There was plenty of good buying when prices hovered around
$1,220 last night, but then people start to sell back when the
price is heading north again. Selling persists but volume is
low," said a physical dealer in Singapore.
"We are also seeing good physical demand for silver from
India lately," he added.
Demand for silver bars and coins has picked up in India as
consumers seek to diversify risk as well as making a quick
return, with prices of the metal far below that of gold.
[]
In the currency markert, the euro's upside was limited
after rating agency Standard & Poor downgraded Ireland to AA-
and warned the outlook was still negative, fanning worries
about euro zone sovereign debt and the banking system. []
Oil bounced from a seven-week low on Wednesday as investors
looked for relief in U.S. durable goods and oil inventory
reports due later in the day, after fears of a double-dip
recession intensified with dismal housing data. []
Precious metals prices at 0530 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1231.40 2.15 +0.17 12.38
Spot Silver 18.44 0.10 +0.55 9.57
Spot Platinum 1513.00 3.00 +0.20 3.14
Spot Palladium 484.65 2.15 +0.45 19.52
TOCOM Gold 3345.00 2.00 +0.06 2.64
43059
TOCOM Platinum 4121.00 4.00 +0.10 -5.93
14485
TOCOM Silver 50.50 0.90 +1.81 -2.32
1022
TOCOM Palladium 1319.00 16.00 +1.23 13.22
110
Euro/Dollar 1.2634
Dollar/Yen 84.24
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
