(Corrects in para 8 annual allottment of ECB gold sale to 400 tonnes)
* Gold needs fresh impetus to climb higher, traders say
* More central bank demand expected after Bangladesh buy
* Dollar's sharp gains on yen pressured gold
* Coming next wk: US retail sales, PPI, CPI, current acc't
(Recasts; updates prices, comment; changes dateline from LONDON)
By Carole Vaporean
NEW YORK, Sept 10 (Reuters) - Gold prices steadied at moderately lower
levels below $1,250 an ounce on Friday as the yen slid against the dollar
and investors continued to unwind safe-haven plays made this week, but
analysts said the IMF's late Thursday gold sale lent support.
Spot gold <XAU=> at $1,245.85 an ounce was down by 3:38 p.m. EDT (1938
GMT) from Thursday's closing bid at $1,248.27 an ounce. It fell to
$1,236.55 an ounce, its lowest in a week.
U.S. December gold futures <GCZ0> eased $4.40 to end at $1,246.50 an
ounce on the COMEX division of the NYMEX. The range extended down to
$1,237.90, its lowest in 10 days.
Earlier this week, bullion touched its highest in two months, above
$1,262 an ounce, on renewed worries about the European banking sector. But
by Friday, some investors were unwinding that safety play, not wanting to
carry those positions over the weekend.
The yen's slide against the dollar also hurt gold. Both the euro and
dollar rallied against the yen, as strong import data from China raised
optimism about global economic growth and prompted higher risk tolerance.
[]
China's imports leaped in August, boding well for a strengthening of
domestic demand in an economy that has become a major driver of global
growth. [].
According to some analysts, some gold players were concerned about
whether any European central banks would sell gold as part of their
allotment for the year before the deadline approaches at the end of
September.
Under the five year Central Bank Gold Agreement, each of the
signatories pledged last year to limit their annual gold sales to a maximum
of 400 tonnes. Despite the historically high level of gold prices of late,
few central banks have opted to sell so far this year. But the fear is that
they might if prices remain high.
"Last year, not all of the participating banks used up what they were
allocated to sell. That's the reason for some trepidation. They might sell
it this year, because we're near (record) highs. And the (European central
bank) sales could come at any time," said George Gero, vice president at
RBC Capital Markets Global Futures in New York.
A gold sale late Thursday by the International Monetary Fund gave the
precious metal an underpinning. Many analysts said they saw the IMF sale as
an indication that central banks still want to own gold.
The IMF said late on Thursday that it sold 10 tonnes of gold to the
central bank of Bangladesh this week, its first sale after a 10-month
hiatus, as a volatile U.S. currency draws holders to bullion.
[]
In the near term, some traders see gold in a range at lower levels
between $1,225 and $1,245 an ounce.
"There hasn't been enough genuine demand around," said Simon Weeks,
head of precious metals at the Bank of Nova Scotia. "The ETFs are
struggling to gain any decent investment, and the physical market's gone
quiet."
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust
<GLD.P>, said its holdings slipped to 1,293.531 tonnes by Sept. 9 from
1,294.442 tonnes by Sept. 3. The holdings hit a record 1,320.436 tonnes on
June 29. []
Gold jewelry sales in Italy, the European Union's top market by
consumption, fell 23.5 percent in the second quarter and are likely to fall
18 percent for the full year, a World Gold Council official said on Friday.
[]
UPWARD TREND IN PLACE
Interest by Asian central banks in bullion is a factor that could
support prices in the long term, analysts said. Industry experts expect
more central banks to follow the move by Bangladesh.
"Gold is one of the few asset classes that is almost universally
permissible by the investment guidelines of emerging countries' central
banks," said Natalie Dempster, director, government affairs, at the World
Gold Council.
Spot silver <XAG=> was nearly even at $19.80 an ounce from $19.79 late
in New York on Thursday. It touched $20.14 an ounce earlier this week, its
highest since March 2008.
Palladium <XPD=> was lower at $517.50 an ounce than $518.73 an ounce
previously, while platinum <XPT=> declined to $1,540 an ounce from
Thursday's $1,548.28 an ounce.
Prices at 2:35 p.m. EDT (1835 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US gold <GCZ0> 1246.50 -4.40 -0.4% 13.7%
US silver <SIZ0> 19.802 -0.012 0.0% 17.6%
US platinum <PLV0> 1542.50 -10.80 -0.7% 4.9%
US palladium <PAZ0> 517.55 -3.05 -0.6% 26.6%
Gold <XAU=> 1244.30 -3.97 -0.3% 13.5%
Silver <XAG=> 19.82 0.03 0.2% 17.7%
Platinum <XPT=> 1538.00 -10.28 -0.7% 4.9%
Palladium <XPD=> 517.50 -1.23 -0.2% 27.6%
Gold Fix <XAUFIX=> 1246.50 -2.25 -0.2% 12.9%
Silver Fix <XAGFIX=> 19.90 -7.00 -0.4% 17.1%
Platinum Fix <XPTFIX=> 1545.00 8.00 0.5% 5.4%
Palladium Fix <XPDFIX=> 518.00 5.00 1.0% 28.9%
(Additional reporting by Lewa Pardomuan in Singapore
and Humeyra Pamuk in London; Editing by Walter Bagley)
