* Lack of physical buying worries some market participants
* SPDR Gold holdings <XAUEXT-NYS-TT> steady
By Miho Yoshikawa
TOKYO, Oct 15 (Reuters) - Gold was steady above $1,060 per
ounce on Thursday as the dollar's weakness and oil's strength
maintained the precious metal's appeal.
Gold rose to new peaks above $1,070 per ounce on Wednesday as
the greenback continued to slide against a basket of six
currencies, although there were worries that the metal may have
become overbought.
"There doesn't seem to be any particular reason at this
present juncture to be selling gold given that the dollar is
continuing to weaken," said Darren Heathcote, head of trading at
Investec Australia.
On Thursday, the dollar fell to its lowest in 14 months
against the euro and against a basket of six currencies. []
Gold <XAU=> was at $1,063.90 per ounce at 0239 GMT, up 0.2
percent.
U.S. gold futures for December delivery <GCZ9> were at
$1,065.50 per ounce, up 0.1 percent.
The strength of crude oil prices has been adding to gold's
rise given the precious metal's traditional role as a hedge
against inflation.
Oil rose above $75 a barrel to settle at a record high for
the year on Wednesday as economic optimism hinted at a recovery
in global energy demand. []
Gold's rush to unchartered waters has not been without
worries, however.
"There's been a huge build-up of longs over the last month or
so, so one has to see that its susceptible ... to some profit
taking, but who wants to be the first person to step in and do
it?" asked Heathcote.
Moreover, bullion's rise has not been accompanied by physical
buying as high prices have deterred many traditional consumers.
Gold demand remained elusive in India, a key buyer, even as
the biggest gold buying festival, Dhanteras, neared, dealers
said. []
The festival season, when jewellery is bought as gifts, ends
in October.
"We are heading towards the season of physical buying, there
will be some, but how limited that will be at the end of the day
is yet to be seen given these very inflated prices," Heathcote
said.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings stood at 1,109.314
tonnes as of Oct. 14, unchanged from the previous business day.
[]
The generally bullish sentiment on gold has rubbed off on
other precious metals.
Spot silver <XAG=> was at $17.88, up a touch from $17.85. It
recently hit a 15-month high of $18.07.
The world's primary silver producer Fresnillo <FRES.L> said
it sees silver near $17-$18 an ounce for the rest of 2009.
[]
Platinum <XPT=> was at $1,358.50 compared to $1,358, while
its sister metal palladium <XPD=> was flat at $326.50.
Platinum recently hit a 13-month high of $1,362.50 and
palladium a 14-month peak of $333.
PRICES
Precious metals prices at 0242 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1063.45 1.55 +0.15 20.83
Spot Silver 17.87 0.02 +0.11 57.86
Spot Platinum 1358.50 0.50 +0.04 45.76
Spot Palladium 326.50 0.00 +0.00 76.96
TOCOM Gold 3066.00 -2.00 -0.07 19.16 31892
TOCOM Platinum 3912.00 3.00 +0.08 47.51 5593
TOCOM Silver 513.70 -1.80 -0.35 60.88 370
TOCOM Palladium 947.00 -5.00 -0.53 72.18 158
Euro/Dollar 1.4947
Dollar/Yen 89.37
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Miho Yoshikawa; Editing by Joseph Radford)
