* Gold slips as speculators book profits
* Gold in euro and sterling holds near record
* For a technical outlook on gold, click on []
* Coming Up: FOMC releases interest rate statement;1815
GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, April 28 (Reuters) - Gold edged down on
Wednesday, consolidating after rising to its highest level in
2010 the previous day, as physical buying was spurred by
worries that the euro zone's debt problems would spread.
Bullion could challenge a lifetime high of $1,226.10 struck
last December as declines in stock markets and a euro currency
tumbling against the U.S. dollar prompted some investors to
shift to gold, lifting holdings in the world's largest
exchange-traded gold fund to a record.
Spot gold <XAU=> was at $1,165.00 an ounce by 0256 GMT,
down $3.03 from New York's notional close on Tuesday, when it
rallied to $1,172.43, its strongest since December, after
Standard & Poor's downgraded the sovereign credit ratings of
Portugal and Greece.
"I think we are looking to reach the previous high around
$1,200-plus seen in late December," said Wong Eng Soon, an
investment analyst at Phillip Futures in Singapore, adding that
European debt worries kept gold supported.
"The February IMF gold sales were quite limited. That might
also indicate that central banks are bullish on gold prices. We
are looking at the FOMC meeting tonight. It's quite likely the
rates will continue to be low for an extended period of time."
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings hit a record for a second
consecutive day at 1,146.825 tonnes. []
The euro tumbled to a one-year low against the dollar on
Wednesday and could drop further in the near term after
downgrades of Greece and Portugal's credit ratings raised fears
the euro zone's debt problems were spreading. []
Global equities slipped following the downgrades, with
Tokyo shares sliding nearly 3 percent <> on Wednesday in
the wake of the previous day's drop in U.S. and European
shares. []
The U.S. Federal Reserve is widely expected to keep
interest rates on hold near zero after a two-day policy meeting
that ends on Wednesday, and stick to its commitment to hold
them there for an "extended period." []
COMEX June <GCM0> added $3.70 an ounce to $1,165.9 an
ounce, having risen to $1,173.40 an ounce on Tuesday, its
firmest since early December.
Gold in euros <XAUEUR=R> and sterling <XAUGBP=R> hold near
record hit on Tuesday.
"There's a bit of profit-taking and Germany seems to be
softening its stance on Greece but I don't think the market
believes it," said a dealer in Hong Kong.
"I guess sentiment is cautiously bullish. The physical side
doesn't want to buy gold at these levels," said the dealer,
referring to jewellers.
German Finance Minister Wolfgang Schaeuble said Germany
will not let Greece down and that the Berlin government is
pushing for a quick decision on emergency aid for Greece.
[]
Precious metals prices at 0256 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1165.00 -3.03 -0.26 6.32
Spot Silver 18.20 0.06 +0.33 8.14
Spot Platinum 1719.00 3.50 +0.20 17.18
Spot Palladium 548.50 3.00 +0.55 35.27
TOCOM Gold 3502.00 17.00 +0.49 7.46
36415
TOCOM Platinum 5150.00 -105.00 -2.00 17.55
23845
TOCOM Silver 55.10 -0.50 -0.90 6.58
360
TOCOM Palladium 1638.00 -51.00 -3.02 40.60
933
Euro/Dollar 1.3200
Dollar/Yen 93.26
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
