* Gold inches up, holds below lifetime high
* For a technical outlook on gold, click on []
* Coming Up: U.S. Retail sales April; 1230 GMT
(Updates prices, adds physical activity)
By Lewa Pardomuan
SINGAPORE, May 14 (Reuters) - Gold edged up on Friday as
investors turned their backs on the euro on worries that
belt-tightening in Europe will slow growth, but the metal
lacked fresh momentum to surpass a recent record high.
Gold was heading for its fourth consecutive weekly rise,
equalling a run that ended in late November. Bullion's safe
haven appeal has increased on worries a $1 trillion rescue
package to prevent a Greek debt crisis from spreading to other
euro zone states would eventually fail.
Gold <XAU=> was at $1,233.90 an ounce by 0545 GMT, up $2.07
from New York's notional close on Thursday. Bullion struck a
record high of $1,248.15 on Wednesday.
In the physical market, purchases from jewellers kept
premiums steady in Singapore but high bullion prices ignited
sales of scrap in other parts of Asia. Gold bars were offered
at premiums of 70 cents to the spot London prices. []
For a graphic showing the technical outlook, see:
http://graphics.thomsonreuters.com/gfx/WT_20101405092123.jpg
"The technical trend is intact even in the face of U.S.
dollar strength, which is amazing. Imagine what gold will do in
the face of dollar weakness as gold priced in euro and weaker
currencies is virtually hyperbolic," said Aaron Smith, head of
Superfund in Asia.
"Once the market fully digests the enormity of the current
credit expansion and free money policy which is funding
bailouts for everything from banks to sovereign nations, it
won't surprise us that gold will trading at $1,500."
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings were unchanged at a record
high of 1,209.499 tonnes as of May 13, which suggested that
investors had little desire to book profits yet. []
U.S. gold futures for June delivery <GCM0> added $6.6 an
ounce to $1,235.8 an ounce. Gold priced in euro <XAUEUR=R> and
sterling <XAUGBP=R> held near an all-time high.
The euro steadied near a 14-month low against the dollar on
Friday on concerns that rigorous fiscal tightening in Europe
would dampen an already-weak recovery. []
"I think the market is watching the euro/dollar rates.
People are talking about higher prices such as $1,300.
Investors still buy gold," said a dealer in Hong Kong. "We
don't see much interest from the jewellery sector," he added.
Japan's Nikkei average fell 1.6 percent on Friday, weighed
down by exporters such as Canon Inc <7751.T> after U.S. stocks
slid on downbeat comments on the economy from company
executives. []
Precious metals prices at 0545 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1233.90 2.07 +0.17 12.61
Spot Silver 19.40 -0.01 -0.05 15.27
Spot Platinum 1721.50 -10.00 -0.58 17.35
Spot Palladium 534.00 -3.00 -0.56 31.69
TOCOM Gold 3693.00 -31.00 -0.83 13.32
46567
TOCOM Platinum 5153.00 -68.00 -1.30 17.62
16311
TOCOM Silver 58.50 -0.40 -0.68 13.15
533
TOCOM Palladium 1601.00 -24.00 -1.48 37.42
409
Euro/Dollar 1.2541
Dollar/Yen 92.81
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Additional reporting by Nick Trevethan in SINGAPORE)
(Editing by Ed Lane)
