* Gold support seen around $1,240; physical buying hesitant
* Coming up: EZ industrial production July; 0900 GMT
(Updates prices)
By Rujun Shen
SINGAPORE, Sept 13 (Reuters) - Gold prices were steady on
Monday, but could soften as upbeat Chinese economic data helped
dissipate fears of a worsening global economy and ease
safe-haven demand.
Industrial production in China ramped up and money growth
exceeded expectations in August, showing buoyant economic
growth despite government efforts to clamp down on bank lending
and property speculation. []
Inflation, though at a 22-month peak, is unlikely to
trigger an immediate interest rate hike, analysts said, as
higher food costs were expected to be transitory after a spell
of bad weather hit the country in the summer.
"After some positive data from China, the economic prospect
brightens and fear of a double-dip fades, we may see gold
retreat a bit today due to profit-taking and easing of
safety-haven need," said Ong Yi Ling, an analyst at Philip
Futures.
Analysts said the support level for gold was at its 20-day
moving average, at about $1,240. Gold could retrace further, if
a drop below the level was sustained, Ong added.
Spot gold <XAU=> inched up 0.2 percent to $1,247.8 an ounce
by 0612 GMT, after having hit a one-week low of $1,236.55 last
Friday.
U.S. gold futures for December delivery <GCZ0> was up 0.2
percent at $1,249.5.
Holdings in the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust <GLD.P> were unchanged at 1,293.531
tonnes. []
The physical market was quiet, with Indonesia on holiday,
while buying elsewhere was light, as buyers held off after
prices rebounded, dealers said.
"If prices drop below $1,240, people will start to buy. But
once it's below that level, people will look at the next
support level at $1,220 to $1,225," said a Singapore-based
dealer. "They will be buying at a slower pace."
Spot gold <XAU=> could have started a bearish reversal at
the Sept 8 high of $1,262.25 per ounce and could fall towards
$1,230 as a five-wave cycle is observed on its hourly chart,
Wang Tao, a Reuters market analyst, says. []
For a 24-hour technical outlook on gold:
http://graphics.thomsonreuters.com/WT/20101309083508.jpg
The euro surged on Monday as positive market sentiment
following upbeat Chinese data and a lack of surprises from new
banking rules tripped automatic buy orders and sent it up
nearly 1 percent on the dollar. []
Analysts said even though gold might face some pressure in
the near term, the upward trend was intact, looking forward.
"Physical demand will enjoy a seasonal lift from India and
China among other countries," said Li Ning, an analyst at
Shanghai CIFCO Futures.
"In addition, there are still concerns on the debt issue in
Europe. These will provide effective support for gold."
Precious metals prices at 0612 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1247.75 2.75 +0.22 13.88
Spot Silver 19.93 0.09 +0.45 18.42
Spot Platinum 1545.50 8.52 +0.55 5.35
Spot Palladium 517.00 2.37 +0.46 27.50
TOCOM Gold 3379.00 3.00 +0.09 3.68
22586
TOCOM Platinum 4209.00 -3.00 -0.07 -3.93
9605
TOCOM Silver 54.10 0.50 +0.93 4.64
283
TOCOM Palladium 1405.00 -7.00 -0.50 20.60
531
Euro/Dollar 1.2815
Dollar/Yen 83.97
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
