* Gold hits a high around $1,199/oz on bargain hunting
* For the technicals in gold, click []
* Coming Up: U.S. weekly ECRI index; 1430 GMT
(Updates prices)
By Lewa Pardomuan
SINGAPORE, July 9 (Reuters) - Gold edged up to near $1,200
an ounce on Friday as bargain buying helped offset selling from
speculators, who had shifted some of their money to equities on
hopes of an economic recovery.
Dealers saw purchases from jewellers and other physical
buyers across Asia, keeping premiums for gold bars steady.
Asian stocks rallied for a second day, with the Nikkei
<> poised for its best week in about four months as risk
appetite got a boost from a fall in U.S. jobless claims and an
upbeat view on Europe's economy from the European Central Bank.
[]
Spot gold <XAU=> added $2.27 to $1,198.75 an ounce by 0327
GMT, well below a lifetime high above $1,264 struck in late
June on worries that the debt crisis in Europe could spread and
the U.S. economy was slowing.
For a graphic of the 24-hour gold technical outlook,
click:
http://graphics.thomsonreuters.com/gfx/WT_20100907082011.jpg
"We see a lot of people buying gold on dips, below $1,200.
However, what we see in these past few days is a bit of
indecision in the market," said Ong Yi Ling, investment analyst
at Phillip Futures in Singapore.
"In the long run, I don't think that the economic recovery
is still entrenched yet. People are still waiting for more
signs that the economic recovery is really on track."
U.S. gold futures for August delivery <GCQ0> rose $2.9 to
$1,199 an ounce, having hit an intraday low around $1,187 on
Thursday as investors dumped bullion to buy riskier assets.
With spot gold down nearly 1 pct this week, and still
hovering below its 50-day moving average, some consumers might
wait for more declines. <GOLD/ASIA1>
"It's still a heavily bought market so it's going to be
vulnerable to profit taking," said Mark Pervan, senior
commodities analyst at ANZ in Melbourne.
"I think $1,170 is still safe to be the next key support
level. If it breaks through $1,170, then you are probably going
to move down to $1,130 pretty quickly," said Pervan, referring
to levels seen in May and April.
Lower prices attracted steady purchases from jewellers in
Thailand and Indonesia as well as buying from bargain hunters
in Hong Kong.
"The physical demand is still very high. My orders go to up
to next Friday at premiums of 80 cents," said a dealer in
Singapore, who was busy selling gold bars to top consumer
India.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said its holdings slipped to 1,316.036
tonnes by July 8 from 1,316.481 on July 6. The holdings hit a
record at 1,320.436 tonnes on June 29. []
The euro held near two-month highs on Friday, while the
Japanese yen was under pressure as investors cut long positions
and veered towards high-yielding currencies on improving risk
appetite. []
Precious metals prices at 0327 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1198.75 2.27 +0.19 9.40
Spot Silver 17.93 0.04 +0.22 6.54
Spot Platinum 1522.50 5.50 +0.36 3.78
Spot Palladium 446.00 0.50 +0.11 9.99
TOCOM Gold 3429.00 -8.00 -0.23 5.22
32625
TOCOM Platinum 4376.00 3.00 +0.07 -0.11
5761
TOCOM Silver 51.60 -0.40 -0.77 -0.19
148
TOCOM Palladium 1287.00 13.00 +1.02 10.47
103
Euro/Dollar 1.2687
Dollar/Yen 88.67
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
