* Gold struggles to break out of recent $930 to $960 range
* SPDR holdings mark first rise since July
* ETFS Silver Trust bullion holdings exceed $100 million
(Recasts, updates with quotes, closing prices, adds NEW
YORK to dateline)
By Frank Tang and Kylie MacLellan
NEW YORK/LONDON, Aug 24 (Reuters) - Gold futures fell
toward $940 an ounce on Monday, losing 1 percent in thin
volume, and the strength of the dollar should continue to
provide catalysts for the near-term direction of the metal,
analysts said.
The price of gold has been largely confined to a trading
range between $930 and $960 in the past three months, as the
metal was pressured by a resurgent dollar but supported by
long-term inflation worries and lingering economic
uncertainties.
"The dollar turned around and gold fell in very thin market
volume. It was due for a fall anyway. How many times has gold
been to $960 and failed? Quite a few," said Leonard Kaplan,
president of Illinois-based Prospector Asset Management.
Kaplan also said that gold largely tracked the equities
market on Monday, as Wall Street turned lower after last week's
sharp gains.
The relationship between gold and the equities market has
recently becoming increasingly positive. Earlier this year,
both the metal and the global stock market had fallen sharply
because of deflation worries.
U.S. December gold futures <GCZ9> settled down $11, or 1.2
percent, at 943.70 an ounce on the COMEX division of the New
York Mercantile Exchange.
"The dollar is a key driver," said John Meyer, analyst at
Fairfax investment bank. "Investors will adopt a wait and see
attitude. Rather than just blindly following oil higher, they
will wait to see what the dollar will do."
The dollar strengthened against a basket of currencies on
Monday, putting downward pressure on gold by making dollar
priced commodities more expensive for holders of other
currencies. []
Higher oil prices, however, failed to provide support to
gold. Gold is traditionally bought as a hedge against
inflationary pressures sparked by higher crude prices.
Bullion hit a one-week high on Friday as the dollar
weakened with strong U.S. housing sales data and upbeat
comments from Federal Reserve Chairman Ben Bernanke reducing
the safe-haven appeal of the U.S. currency.
Analysts said gold would continue to take its cue from
movements in the U.S. currency and oil prices over the coming
days, struggling to break through the upper end of its recent
$930 to $960 range.
INVESTOR DEMAND SUPPORTS
Gold also took support from a pick up in investor demand,
with holdings of the SPDR Gold Trust <GLD>, the world's largest
gold-backed exchange-traded fund, up 0.92 tonnes to 1,066.41
tonnes on Friday, marking the first rise since July 16.
Among other precious metals, silver <XAG=> was at $14.18 an
ounce compared with $14.15.
ETFS Silver Trust <SIVR.P>, a U.S. exchange-traded product
(ETP) trading on the New York Stock Exchange, said its silver
bullion holdings exceeded $100 million, underscoring strong
interest in the grey metal among retail investors.
Platinum <XPT=> was at $1,237.50 an ounce, down from its
previous finish of $1,251, and palladium <XPD=> was at $281
from its previous close of $278.50.
In other news, the U.S. Commodity Futures Trading
Commission said it obtained more than $27 million in
restitution related to fraud charges against Martin Armstrong,
a former trader and financial advisor accused of failing to
produce millions of dollars in gold bars and rare coins.
[]
Close Change Pct 2008 YTD
Chg Close Pct Chg
US gold <GCZ9> 943.70 -11.00 -1.2 884.30 6.7
US silver <SIU9> 14.195 0.031 0.2 11.295 25.7
US platinum <PLV9> 1248.10 -11.10 -0.9 941.50 32.6
US palladium <PAU9> 285.35 0.40 0.1 188.70 51.2
Prices at 3:00 p.m. EDT (1900 GMT)
Gold <XAU=> 942.50 -10.15 -1.1 878.200 7.3
Silver <XAG=> 14.18 0.03 0.2 11.30 25.5
Platinum <XPT=> 1237.50 -13.50 -1.1 924.50 33.9
Palladium <XPD=> 281.00 2.50 0.9 184.50 52.3
Gold Fix <XAUFIX=> 951.50 -1.00 -0.1 836.50 13.7
Silver Fix <XAGFIX=> 14.410 0.400 2.9 14.760 -2.4
Platinum Fix <XPTFIX=> 1244.00 0.00 0.0 1529.00 -18.6
Palladium Fix <XPDFIX=> 282.00 0.00 0.0 365.00 -22.7
(Reporting by Frank Tang and Kylie MacLellan; Editing by
Marguerita Choy)
