* Gold firmer, SDPR holdings hit record
* Coming Up: In US, sentiment, 3 regional ISMs, income
(Recasts; updates with closing prices, adds comment, changes
dateline from LONDON)
By Carole Vaporean
NEW YORK, May 27 (Reuters) - Gold prices were modestly
higher by late Thursday trade, having risen earlier to a
one-week high, supported by the metal's safe-haven appeal as
concerns linger over the euro zone credit crisis, but global
equity market rallies and the euro's bounce capped the rise.
Spot gold <XAU=> was higher at $1,212.10 an ounce by 2 p.m.
EDT (1800 GMT) than $1,209.90 in late New York trade on
Wednesday. The precious metal has risen about 3 percent this
week, hitting $1,218.35 on Thursday, its highest level since
May 19.
Benchmark U.S. gold futures for June delivery <GCM0> on the
COMEX division of the New York Mercantile Exchange finished
$1.50 lower at $1,211.90 an ounce, after earlier reaching an
8-day high at $1,218.50.
June gold was in range as rollovers out of the contract
into later-dated issues dominated COMEX gold trade. First
notice day for June futures is May 28. Anyone still holding
June contracts on Friday will risk taking delivery of the
yellow metal.
Instead, most players were rolling gold futures positions
into August contracts, with some moving into December.
COMEX August gold <GCQ0> fell 90 cents to end at
$1,214.40.
Jonathan Jossen, independent COMEX trader representing
several large hedge funds, said he saw gold resuming its upward
trend once the rollover period had run its course.
"Since you have players on both sides of the market, it
keeps the price in place. So, we're in a tight range, but once
the roll is over, I think we're going back up," said Jossen.
He noted that in August's run from last Friday's low at
$1,168 to the session high at $1,220.6 a number of fund
investors "bought thousands and thousands of call spreads. We
have a lot of very bullish trades going on. I'm very bullish."
Jossen added that an August futures weekly chart showed a
support level at $1,206 held in a cup and handle formation,
which he deemed "a very bullish formation when it works."
"If it holds, I'd say we're going up to $1,228," he said.
Investors have taken refuge in bullion in recent weeks,
favoring its safe-heaven appeal and ditching the euro on fears
the euro zone debt crisis could deepen. Gold hit a record high
of $1,248.95 in mid-May.
"It looks quite solid, the rally in gold," said Deutsche
Bank's head of commodity research, Michael Lewis.
"We still feel market disruption risk is something we're
going to see quite frequently now over the next year. There are
a number of factors we would highlight as risks, which could be
quite beneficial for gold," he added.
Putting a leash on gold's gains were rallies in share
prices and the euro, which rose 0.7 percent versus the dollar,
when investors risk tolerance grew after China and Kuwait
denied reports they would reduce euro zone investments.
[].
Bullion dropped to a two-week low last week as investors
sold the metal to cover losses in equities, but analysts said
the subsequent recovery showed sentiment was still bullish.
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http://graphics.thomsonreuters.com/gfx/WT_20102705090254.jpg
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Underpinning gold was data showing the U.S. economy in the
first quarter grew at a slower pace than previously estimated.
[]
ETF BOOST
Also supportive to gold, the world's largest gold-backed
exchange-traded fund, the SPDR Gold Trust <GLD>, said its
holdings totaled 1,267.626 tonnes as of May 26, up from
1,267.322 tonnes a day earlier, setting a fresh record.
[]
The World Gold Council said global gold demand would likely
rebound this year as investors buy the metal as a safe store of
value away from volatile financial markets and as consumers get
used to higher prices. []
Palladium rose to $460.50 against $436.50. Platinum <XPT=>
advanced to $1,556.0 an ounce against $1,518.50. Spot silver
<XAG=> was well up at $18.43 an ounce from $18.01 previously.
(Additional reporting by Rebekah Curtis; Editing by Walter
Bagley)
