TOKYO, July 8 (Reuters) - Gold prices fell on Wednesday as
the dollar remained firm on investor risk aversion, sapping
gold's appeal as an alternative investment, while bullion was
also hurt by easing inflation fears as oil prices weakened.
FUNDAMENTALS
* Spot gold <XAU=> had fallen 0.2 percent to $921.75 an ounce
by 0019 GMT, down from New York's notional close of $923.30.
* Gold has been hurt by the dollar's strength as investors
have recently preferred the U.S. currency to bullion as a safe
store of value amid fears over the economic outlook.
* U.S. gold futures for August delivery <GCQ9> fell 0.8
percent to $921.70 an ounce, compared with $929.10 an ounce on
the COMEX division of the New York Mercantile Exchange.
* Gold futures ended higher on Tuesday as investors snapped
up bargains following recent price weakness, but gains were
limited as oil extended declines. Sharply weaker stock markets
also prompted investors to switch funds into the hard asset
precious metal sector.
* The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings stood at 1,120.19 tonnes as
of July 7, unchanged from the previous business day. []
MARKET NEWS
* The market was eyeing comments on the dollar's role as the
global reserve currency at the Group of Eight leaders' meeting
starting on Wednesday. [] []
* Tokyo's Nikkei share average was down 1.2 percent. []
* U.S. stocks fell to their lowest level in 10 weeks on
Tuesday as talk of a second government stimulus plan heightened
fears the economy is not yet on a path to recovery and the
corporate earnings season starting this week will be weak. []
* The dollar and yen held gains on Wednesday. They rose
broadly on Tuesday as uncertainty about the global economic
outlook and forthcoming U.S. corporate earnings increased the
safe-haven appeal of both currencies. []
DATA EVENTS
* The following data is expected on Wednesday: <ECON>
- Japan corporate bankruptcies for June. (0400 GMT)
- Japan economy watchers poll for June. (0500 GMT)
- G8 Summit in L'Aquila, Italy. (N/A)
- The Bank of England's two-day policy meeting starts. (N/A)
- Euro zone first quarter gross domestic product. (0900 GMT)
- German industrial production for May. (1000 GMT)
- Weekly U.S. mortgage market index. (1100 GMT)
- OPEC secretary general news conference. (1300 GMT)
- IMF releases updated World Economic Outlook and Global
Financial Stability Report. (1300 GMT)
- U.S. consumer credit for May. (1900 GMT)
RELATED NEWS
> Gold ends up on bargain hunting despite weak oil []
> Russia, China to push global currency at G8 summit[]
> Metals, oil rally off lows; outlook clouded []
> Oil falls as recovery fears spur risk aversion []
> More US consumer worries as Germany boosts hopes[]
> US should plan 2nd fiscal stimulus-govt adviser []
PRICES
Precious metals prices at 0023
Metal Last Change Pct chg Day ago pct MA 30 RSI
Spot gold $921.75 -$1.55 -0.17% +2.76% $860.10 38
Spot silver $13.03 -$0.07 -0.53% +8.76% $11.29 23
Spot plat $1116.00 -$16.00 -1.41% -2.36% $1206.05 26
COMEX gold $922.00 -$2.10 -0.23% -0.25% $944.63 44
TOCOM gold 2,813 -26 -0.92% -1.57% 2,931 32
TOCOM plat 3,240 -279 -7.93% -9.70% 3,758 19
Currencies
Euro/dlr $1.390 -$0.002 -0.11% -0.50%
Dlr/yen 94.63 -0.23 -0.24% -0.77%
(Reporting by Chikako Mogi; Editing by Chris Gallagher)
