REFILE-PRECIOUS-Gold steady while ETF hits record, stimulus eyed

                                
 (Refiles to fix typo in headline)
                                
 By Chikako Mogi
                                
 TOKYO, Feb 10 (Reuters) - Gold held steady near $900 an
ounce on Tuesday, but the market was capped as investors
awaited the expected passage this week of a U.S. economic
stimulus package.
                                
 Investors have been taking profits after the market hit a
near four-month high of $930 but failed to hold that level.
                                
 The focus is now on the U.S. Congress and the $800 billion
economic stimulus package, with investors seeking clues on
whether it will be enough to shore up the sagging U.S. economy.
                                
 President Barack Obama has been urging Congress to act
swiftly on the stimulus bill. [ID:nN08349993]
                                
 "Everybody is waiting for the stimulus package which is
expected by the end of the week," said Adrian Koh, a trader at
Philip Futures.
                                
 If the package contained details deemed effective for the
economy, "it could lead to investors stopping to buy gold and
move out of the safe-haven gold market," he said.
                                
 Gold <XAU=> was trading at $895.15 an ounce, up $0.15 from
New York's notional close on Monday. Prices were in a narrow
range between $892.65 and $899.55.
                                
 Gold has gradually gained in popularity among investors as
uncertainty over the global economy has deepened in the wake of
the financial crisis, which battered markets across the board.
                                
 Massive fiscal stimulus measures announced by governments
around the world have also raised concerns about the risk of
rising inflation, giving traders another incentive to buy gold
as a hedge against such price increases.
                                
 Reflecting the strength of investor appetite for the yellow
metal, holdings in the world's largest gold-backed
exchange-traded fund hit a fresh record.
                                
 The SPDR Gold Trust <GLD>, which issues securities backed
by physical stocks of gold, hit a record 881.87 tonnes on Feb.
9, up 1.7 percent from the previous day. [GOL/SPDR]
                                
 "The link between the dollar and gold has been positive
over the past one to two weeks, suggesting that players are
still bullish on the market's longer-term outlook," Koh said.
                                
 For a graphic of exchange-traded fund holdings, please
click on:
https://customers.reuters.com/d/graphics/MKTS_SPDRGLD100209.jpg
                                
The dollar was little changed against the yen <JPY=> but was
up 0.8 percent against the euro <EUR=>.
                                
 The U.S. Treasury has dropped plans to establish a "bad
bank" to buy distressed assets from commercial banks as part of
a financial rescue package, CNBC reported on its website on
Tuesday, adding to doubts that the plan would be effective.
[ID:nSYD409390]
                                
 Precious metals prices at 0713 GMT
 Metal             Last    Change  Pct chg  YTD pct chg
Turnover
 Spot Gold         894.10   -0.90   -0.10      1.58
 Spot Silver        12.82   -0.01   -0.08     13.25
 Spot Platinum     990.00    2.00   +0.20      6.22
 Spot Palladium    204.00   -1.00   -0.49     10.57
 TOCOM Gold       2637.00  -19.00   -0.72      2.49      
38653
 TOCOM Platinum   2918.00    7.00   +0.24     10.03       
7329
 TOCOM Silver      373.70   -3.70   -0.98     17.04        
349
 TOCOM Palladium   618.00  -10.00   -1.59     12.36        
289
 Euro/Dollar       1.2885
 Dollar/Yen         91.38
 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 Risa Maeda; Editing by Clarence
Fernandez)