* Buying to emerge on dips unless data alters low-rate view
* SPDR Gold holdings up on Wed, first rise since Nov 3
By Risa Maeda
TOKYO, Nov 19 (Reuters) - Gold edged down on Thursday, taking
a breather after hitting a new record above $1,150 per ounce the
previous day as inflation fears fuelled by stronger-than-expected
U.S. consumer prices added to the already bullish mood.
But the dollar gained some ground against a basket of
currencies on Thursday, slightly sapping gold's momentum. The
metal is often bought as an alternative to the U.S. currency.
[]
Investors were largely seen pausing before checking new
economic data to see if U.S. interest rate hikes are still a long
way off.
"The structural strength in gold remains in tact," said
Kaname Gokon, deputy general manager at Japanese commodity
brokerage Okato Shoji Co's research section.
"Any further dips would be supported as buying is expected to
emerge at around $1,120. Nothing will change unless strong U.S.
data dashes a consensus that U.S. interest rates will stay low,"
he said.
Spot gold <XAU=> was at $1,142.25 per ounce at 0315 GMT, down
0.2 percent from New York's notional close of $1,144.70.
U.S. gold futures for December delivery <GCZ9> were steady at
$1,143.00 an ounce after closing on Wednesday at $1,141.20, up
$1.80. The contract hit a record of $1,153.40 on Wednesday.
Bullion reached an all-time high of $1,152.75 on Wednesday.
It had pierced record highs on eight of the 12 sessions until
Wednesday, during which time it rose more than 8 percent.
Doubts about a nascent economic recovery and jitters among
central banks, some of which have diversified away from the U.S.
dollar, have raised gold's allure as a safe haven asset.
Nigel Phelan, Australian and New Zealand director of ETF
Securities, said the most recent move in the price of gold built
on the sharp rise earlier this month that was stimulated by the
announcement that India will buy 200 tonnes of IMF gold.
[]
"Many market participants view this purchase as just the tip
of the iceberg, with China, Russia and other central banks also
indicating their intention to build up gold holdings as part of
their strategy to diversify away from the U.S. dollar."
"Gold is being viewed as one of the primary alternatives to
holding paper currency and the gold price has become a key
barometer of investor confidence in government policies," Phelan
said in comments emailed to Reuters.
Underlining the metal's strength, holdings by the world's
largest gold-backed exchange-traded fund, SPDR Gold Trust <GLD>,
rose on Wednesday for the first time since Nov. 3.
SPDR Gold said its holdings rose by 3.66 tonnes or 0.3
percent from the previous business day to 1,117.493 tonnes on
Wednesday. []
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its bullion holdings rose to a
record 9,021.31 tonnes on Wednesday, up 67.23 tonnes or 0.75
percent from the previous business day. []
Among other precious metals, spot silver <XAG=> was at $18.49
per ounce, off a 16-month high of $18.83 hit the previous day.
Platinum <XPT=> was at $1,441 after reaching the previous day
$1,463.50, its highest since September 2008.
Palladium <XPD=> was $369.25, off a 15-month high of $376 hit
on Wednesday.
Precious metals prices at 0321 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1142.50 -2.20 -0.19 29.81
Spot Silver 18.49 -0.05 -0.27 63.34
Spot Platinum 1442.50 3.00 +0.21 54.77
Spot Palladium 369.25 0.75 +0.20 100.14
TOCOM Gold 3286.00 10.00 +0.31 27.71 45941
TOCOM Platinum 4143.00 -24.00 -0.58 56.22 11702
TOCOM Silver 532.60 5.20 +0.99 66.80 379
TOCOM Palladium 1058.00 -7.00 -0.66 92.36 157
Euro/Dollar 1.4928
Dollar/Yen 89.15
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by James Regan in Sydney; Editing by
Joseph Radford)
