* Gold seen consolidating before heading higher
* SPDR Gold holdings dip 0.1 pct []
By Miho Yoshikawa
TOKYO, Oct 22 (Reuters) - Spot gold was steady around $1,060
an ounce on Thursday, not far from the record high marked last
week as it drew investors hedging against a weaker dollar and
concerned over inflation stemming from strong oil prices.
Gold <XAU=> was at $1,058 per ounce at 0545 GMT, little
changed from the notional close in New York of $1,058.35.
U.S. gold futures for December delivery <GCZ9> were at
$1,059.1 per ounce, down 0.5 percent.
Last week, spot gold soared to an all-time high of $1,070.40,
while New York gold futures hit a record peak of $1,072 as the
dollar's weakness spurred buying of gold.
A weaker dollar benefits gold as it makes it cheaper for
holders of other currencies. It also enhances the metal's allure
as a hedge against a depreciation in the U.S. currency.
"From a technical perspective, it looks like the precious
metal is pausing and consolidating after reaching the highs of
$1,070 an ounce," said Adrian Koh, an analyst at Phillip Futures.
"And if the general scenario doesn't change, as in a
weakening dollar, then we could be in for a test of the record
highs again when gold does break higher," he said.
The dollar was under pressure on Thursday, hovering near a
14-month low against a basket of currencies. []
U.S. crude futures <CLc1> remained above $81 a barrel on
Thursday, extending the previous session's gains on U.S.
government data which showed a surprisingly large drawdown in
gasoline inventories. []
Buying by long-term investors has been slow, however.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings stood at 1,108.094
tonnes as of Oct. 21. []
That marks a decline of 0.1 percent from two weeks ago when
it rose to 1,109.314 tonnes on Oct. 7.
India's gold sales for the Dhanteras festival, its biggest
gold-buying day, could have risen by up to 30 percent from a
benchmark, as consumers expecting the near-record prices to rise
further bought freely. []
Buying by India, a top consumer, has been slow until now, and
has been seen as an illustration of weak physical demand.
The president of the Indian Bullion Market Association told
Reuters on Thursday that record high gold prices above $1,000 an
ounce may encourage more Indian buyers to turn to much cheaper
silver. []
Analysts said the rise in speculative net long positions to a
record last week also makes gold vulnerable to a correction.
In industry news, Australia's Newcrest Mining Ltd <NCM.AX>
reported a 5 percent decline in September quarter gold production
on Thursday after mining lower gold-bearing ores at some mines.
[]
ETF Securities USA filed a preliminary prospectus with the
Securities and Exchange Commission on its proposed first-ever
U.S. platinum exchange-traded fund (ETF). []
PRICES
Precious metals prices at 0545 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1058.00 -0.35 -0.03 20.21
Spot Silver 17.56 -0.10 -0.57 55.12
Spot Platinum 1363.50 4.50 +0.33 46.30
Spot Palladium 335.00 2.50 +0.75 81.57
TOCOM Gold 3113.00 24.00 +0.78 20.99 40654
TOCOM Platinum 4016.00 64.00 +1.62 51.43 12114
TOCOM Silver 518.90 9.20 +1.80 62.51 288
TOCOM Palladium 988.00 5.00 +0.51 79.64 282
Euro/Dollar 1.4995
Dollar/Yen 91.20
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 Chikako Mogi; Editing by Michael
Watson)
