(Corrects time for U.S. ICSC chain stores to 1145 GMT)
* Gold firms on steady physical buying
* For the technicals in gold, click []
* Coming Up: U.S. ICSC chain stores y/y; 1145 GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, July 7 (Reuters) - Gold regained strength on
Wednesday as bargain hunters snapped up the metal after prices
dropped to a six-week low the previous day, while dealers also
shrugged off declines in ETF holdings.
Bullion has dropped more than 2 percent since striking a
record above $1,264 an ounce in late June, but turmoil in the
financial markets could offer investors a safe haven. Dealers
in Asia also noted a pickup in physical buying from jewellers.
Spot gold <XAU=> rose $1.50 to $1,193.00 an ounce by 0232
GMT, having fallen as low as $1,189.30 on Tuesday. Gold had
struck a lifetime high on worries the euro debt crisis was
spreading and that U.S. economy was slowing.
For a graphic of the 24-hr gold technical outlook, click:
http://graphics.thomsonreuters.com/gfx/WT_20100707092609.jpg
"I wouldn't be surprised to see gold recover back above
$1,200 an ounce or may move even higher in the near term," said
David Moore, a commodity strategist at Commonwealth Bank of
Australia in Sydney.
"At the end of the day, I think the uncertainties in the
international economic environment remain significant and they
will be supportive for the gold price in the near term."
U.S. gold futures for August delivery <GCQ0> fell $1.3 to
$1,193.8 an ounce.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said its holdings slipped to 1,316.481
tonnes by July 6 from 1,318.915 on July 2. The holdings hit a
record at 1,320.436 tonnes on June 29. []
"At this stage, I wouldn't read too much into that," said
Moore, referring to the decline in ETF holdings. "I don't think
it's inconsistent with what we're just talking about... may be
some profit taking and things like that."
The Nikkei edged down on Wednesday as shares of exporters
that rose the day before gave back some gains, even after the
Wall Street rebounded on Tuesday to end a five-day string of
losses. [] []
The euro hovered near seven-week highs on Wednesday while
the Australian dollar retained its smart gains, as investors
pared long positions in the U.S. dollar on doubts about an U.S.
economic recovery. []
The physical sector was active in Singapore and Hong Kong,
and steady demand from jewellers and other physical buyers led
to supply tightness.
"We've been selling gold since last week, but it's
difficult to get hold of materials within a short period," said
a physical dealer in Singapore, who trades gold bars. "The
market may also turn around too quickly. That's why it's
difficult for both customers and sellers," he added.
In other metals, silver, palladium and platinum were hit by
weaker equities.
Precious metals prices at 0232 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1193.00 1.50 +0.13 8.88
Spot Silver 17.77 -0.01 -0.06 5.59
Spot Platinum 1505.00 -7.50 -0.50 2.59
Spot Palladium 434.50 -0.50 -0.11 7.15
TOCOM Gold 3368.00 -53.00 -1.55 3.34
32729
TOCOM Platinum 4266.00 -4.00 -0.09 -2.62
12497
TOCOM Silver 50.60 -0.40 -0.78 -2.13
247
TOCOM Palladium 1235.00 5.00 +0.41 6.01
173
Euro/Dollar 1.2608
Dollar/Yen 87.50
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Himani Sarkar)
