* Gold losing grip of recent record highs
* Weak physical buying pressures bullion prices
* SPDR holdings rise
(Releads, updates prices, adds analyst's comment)
By Rebekah Curtis
LONDON, Dec 21 (Reuters) - Gold fell on Monday to flirt with
recent multiweek lows, with trade proving volatile in the quiet
holiday season and as analysts predicted further dollar strength
would pressure prices in the New Year.
Gold traded at $1,104.80 an ounce at 1459 GMT, versus
$1,112.25 an ounce late in New York on Friday when bullion rose.
Last week gold fell below a psychological support level of
$1,100 to a six-week low of $1,094.50, losing grip of a record
high above $1,226 hit on Dec. 3.
"Nobody's going to put on fresh positions at this time of
year," said Robin Bhar, an analyst at Calyon. "If I was putting
money in the gold market I'd be biding my time," he said, adding
that prices were likely to continue to correct early next year.
"There'll be a better time to buy," he said, adding that
longer-term the gold rally still has more steam left.
"Its not the end of the gold story yet."
Gold has come under pressure recently from a strengthening
dollar, with the currency hitting 3-month highs against the euro
last week.
The currency is expected to firm further in early 2010,
analysts said, curbing gold's appeal as an alternative
investment and making the precious metal more expensive for
holders of other currencies. <.DXY>
Concerns over debt problems in Dubai and Greece are helping
underpin the currency. []
Analysts also see bullion prices stalling in the short-term
due to weak physical buying.
GOLD FUTURES
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 week-on-week rise was the first in three weeks.
Meanwhile, 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. []
Silver was at $17.20 an ounce from $17.26 and platinum
<XPT=> was at $1,419 from $1,427.50. Palladium <XPD=> was at
$361.50 from $359.50.
"We now believe the probable year-end gold price will be
around $1,050," Commerzbank said in a note.
"The other precious metals, particularly silver, are likely
to follow in gold's wake, albeit with a wider volatility range,
and to ease in the next few days in the absence of any
significant upward pressure from the U.S. dollar."
(Editing by Keiron Henderson)
