* 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 0.1 percent at $1,135.90 per ounce as
of 0556 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 $1,136.80 per ounce, compared with Monday's $1,135.80
on the COMEX division of the New York Mercantile Exchange.
For technical analysis of the spot gold price, click
[]
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 generally, but Japan's Nikkei average
erased earlier gains and ended nearly flat on Tuesday. []
U.S. stocks rose on Monday when investors reassessed the
potential damage of the case against Goldman and earnings
optimism grew. []
The dollar steadied 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 0551 GMT
Metal Price Change Pct chg YTD pct chg Turnover
Spot Gold 1135.90 1.30 0.11 3.67
Spot Silver 17.76 0.05 0.28 5.53
Spot Platinum 1691.00 -2.50 -0.15 15.27
Spot Palladium 535.25 0.25 0.05 32.00
TOCOM Gold 3393 35.00 1.04 4.11 49816
TOCOM Platinum 5035 105.00 2.13 14.93 17811
TOCOM Silver 53 1.00 1.91 3.29 418
TOCOM Palladium 1594 63.00 4.11 36.82 739
Euro/Dollar 1.3459
Dollar/Yen 92.5900
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Michael Watson)
