* Gold inches up, jewellers sidelined
* For technicals on gold, click []
* Coming Up: U.S. FOMC rate decision; 1815 GMT
(Updates prices)
By Lewa Pardomuan
SINGAPORE, June 23 (Reuters) - Gold edged up on Wednesday,
tracking an increase in key exchange-traded fund holdings as
investors sought a safe haven from sliding stock markets and
worries about the pace of global economic recovery.
Spot gold <XAU=> added 35 cents to $1,239.35 an ounce by
0524 GMT after hitting an intraday high of $1,241.25 -- still
below Monday's record around $1,264. Gold has gained as much as
15 percent in 2010, mainly due to fears the sovereign debt
crisis in Europe would spread.
U.S. gold futures for August delivery <GCQ0> was barely
moved at $1,240.5, having struck a lifetime high on Monday.
"I think there's also probably still a pool of investors
that have longer-run concerns about inflation and that sort of
thing," said David Moore, commodity strategist at Commonwealth
Bank of Australia in Sydney.
"There's still uncertainty about the rate of the
international economic recovery, and I think that's probably
helping gold as well," he added.
The world's largest gold-backed exchange-traded fund (ETF),
SPDR Gold Trust <GLD.P> said its holdings rose to a record at
1,313.135 tonnes as of June 22 -- the first increase since June
17, when holdings stood at 1,307.963 tonnes.
A Fitch rating downgrade of French bank BNP Paribas
<BNPP.PA> and a surprise decline in May U.S. existing home
sales also renewed concerns over the health of the U.S.
economy. []
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For a graphic on gold timeline, click:
http://graphics.thomsonreuters.com/10/GLD_TMLN.html
For a graphic on SPDR gold holdings and gold price, click:
http://graphics.thomsonreuters.com/10/GLD_SPDR0610.gif
For a graphic on SPDR gold holdings flows, click:
http://graphics.thomsonreuters.com/10/GLD_SPDRVL0610.gif
For a graphic on the spot gold technical outlook, see:
http://graphics.thomsonreuters.com/gfx/WT_20102306091419.jpg
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Also in focus is the latest decision on interest rates by
the U.S. Federal Open Market Committee on Tuesday at 1815 GMT.
No surprises on interest rates or the outlook are expected,
but investors want to hear what the Fed has to say about the
impact of Europe's debt crisis on the U.S. economy.
[].
The euro <EUR=> hardly changed at $1.2266 ahead of the FOMC
rate decision later in day as a recent risk rally appeared to
have run its course and the euphoria from China's new yuan
policy waned. []
"When it got above $1,260, I am sure there was probably a
bit of profit taking there. But there are a number of reasons
why investors have an interest in gold," said Moore of CBA.
"I think they see it as a safe haven given the European
fiscal problems."
In the physical sector, sale of gold scrap slowed to a
trickle as holders waited for bullion to rise further.
"I am still bullish on gold. ETFs continue to absorb
physical gold. But there's not much spot trading today even
though price dropped below $1,240 yesterday," said a dealer in
Hong Kong, referring to a lack of interest from jewellers.
Japan's Nikkei average more than 1 percent on Wednesday,
sliding to a its lowest in almost a week and back towards a key
support level, after poor U.S. housing data triggered a fall in
Wall Street. [] []
Precious metals prices at 0524 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1239.35 0.35 +0.03 13.11
Spot Silver 18.81 0.07 +0.37 11.76
Spot Platinum 1574.00 -8.50 -0.54 7.29
Spot Palladium 483.50 2.00 +0.42 19.24
TOCOM Gold 3616.00 -4.00 -0.11 10.95
29123
TOCOM Platinum 4627.00 -58.00 -1.24 5.62
13516
TOCOM Silver 55.20 -0.30 -0.54 6.77
373
TOCOM Palladium 1417.00 -31.00 -2.14 21.63
409
Euro/Dollar 1.2265
Dollar/Yen 90.47
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Ed Lane)
