* Initial Goldman shock over but investors wary of fallout
* Downside seen limited as bargain hunters expected to emerge
* Coming up: Germany April ZEW due at 0900 GMT
By Chikako Mogi
TOKYO, April 20 (Reuters) - Gold prices steadied above
two-week lows on Tuesday but investors remained cautious about
potential fallout from fraud charges against Goldman Sachs and
currency volatility over Greece's debt problems.
Gold tumbled 2 percent on Friday when U.S. regulators brought
fraud charges against Goldman Sachs Group Inc <GS.N>, a leading
commodities player, with investors fretting about prospects of
tighter financial regulations in metals and commodities.
Investors took the opportunity to cash in profits on gold,
which has rallied about $100 since early February, pushing it to
a two-week low on Monday.
With the selling, much of the market's long positions appear
to have been cleared, but investors remained cautious about
potential fallout from the Goldman case, traders said.
"Those who panicked have unwound longs and are now taking a
wait-and-see stance, while physical buyers remain absent," said
Yuichi Ikemizu, Tokyo branch manager for Standard Bank.
"The initial shock over Goldman is over, but players are
suspicious and unsure what implications it may have over the long
term, and whether similar steps could be taken against other
financial institutions," he said.
Traders said despite the initial selling related to Goldman,
the market's downside was limited, with a further decline in
prices likely spurring bargain hunting.
Spot gold <XAU=> was up 0.2 percent at $1,136.60 per ounce as
of 0140 GMT, compared to New York's notional close of $1,134.60
an ounce.
U.S. gold futures for June delivery <GCM0> inched up 0.1
percent to $1,137.00 per ounce, compared with Monday's $1,135.80
on the COMEX division of the New York Mercantile Exchange.
As the market declined, holdings at the world's largest
gold-backed exchange-traded fund, the SPDR Gold Trust <GLD>,
stayed at a record high 1,141.041 tonnes as of April 19,
unchanged since April 9. []
Asian stocks recovered, with Japan's Nikkei average rising
0.8 percent on Tuesday, a day after its biggest percentage loss
in two months, as concerns about the Goldman case waned and the
yen fell back. []
The gains followed a rise in U.S. stocks on Monday when
investors reassessed the potential damage of the case against
Goldman and earnings optimism grew. []
The dollar was slightly weaker against a basket of major
currencies on Tuesday, after rising the previous day when
concerns over Goldman and a delay in planned talks on an aid
package for Greece stoked safe-haven demand for the U.S.
currency. []
Disruption of flights in Europe due to the Icelandic volcano
had not affected the physical gold market in Asia, because
investors had been selling gold to take profits before the
eruption and inventories were rising locally, Ikemizu said,
adding that the main impact would be on deliveries around Europe.
Precious metals prices at 0155 GMT
Metal Price Change Pct chg YTD pct chg Turnover
Spot Gold 1136.50 1.90 0.17 3.72
Spot Silver 17.77 0.06 0.34 5.59
Spot Platinum 1689.00 -4.50 -0.27 15.13
Spot Palladium 534.25 -0.75 -0.14 31.75
TOCOM Gold 3392 34.00 1.01 4.08 41176
TOCOM Platinum 5022 92.00 1.87 14.63 13329
TOCOM Silver 53 0.90 1.72 3.09 350
TOCOM Palladium 1587 56.00 3.66 36.22 606
Euro/Dollar 1.3473
Dollar/Yen 92.5500
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Michael Watson)
