* Gold sheds early gains in thin trade
* For the technicals on gold, click []
* Coming Up: Weekly U.S. jobless claims; 1230 GMT
(Updates prices)
By Lewa Pardomuan
SINGAPORE, July 1 (Reuters) - Gold edged down on Thursday
as investors waited for more clues on the state of the global
economy after prices rallied towards a record this week, but
falling shares could spur another round of safe haven buying.
The Nikkei dropped more than 2 percent to a seven-month low
on Thursday after U.S. stocks tumbled, as investors dumped
riskier assets on the back growing fears of a "double-dip"
recession for the global economy. [] []
Spot gold <XAU=> fell $1.35 to $1,240.00 an ounce by 0503
GMT, having hit a high of $1,262.45 on Monday -- within sight
of a lifetime high above $1,264 struck last week.
"Gold is increasingly vulnerable to profit taking by
investors," said Ong Yi Ling, investment analyst at Phillip
Futures.
"On the mid-term to long-term basis, the uptrend for gold
is definitely still there. Economic worries will continue to
support the gold price, so on the long-term, definitely the
uptrend for gold still remains," she said.
For a graphic of the 24-hour gold technical outlook,
click:
http://graphics.thomsonreuters.com/gfx/WT_20100107091526.jpg
Bullion gained than 11 percent in the second quarter as
investors seeking safety from turmoil in the financial markets
lifted the metal to its best quarterly performance since the
fourth quarter of 2007.
But investors who had bet the price would rally to $1,250
were closing off their positions to book profits, capping gold
on the upside.
U.S. gold futures for August delivery <GCQ0> fell $5.1 an
ounce to $1,240.8.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said its holdings were unchanged at a
record of 1,320.436 tonnes. []
Gold shrugged off data that showed China's official
purchasing managers' index (PMI) fell to 52.1 in June from 53.9
in May, weaker than the median forecast of 53.1.
[] "Maybe if you see the numbers are
better-than-expected, it can also potentially exert some
downward pressure for gold prices because it encourages a bit
of risk taking," said Ong at Phillip Futures.
Silver <XAG=> was barely moved, while platinum <XPT=> and
palladium <XPD=> dropped because of sagging equities markets.
The euro hit a lifetime low against the Swiss franc on
Thursday, as weaker-then-expected Chinese data added to doubts
about the strength of the global recovery, while jitters about
funding strains in the euro zone lingered. []
Crude prices fell for a fourth consecutive day on Thursday
to below $75 on signs that China's economic growth is slowing,
while the dollar strengthened as Europe's debt woes kept
simmering across financial markets. []
Precious metals prices at 0503 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1240.00 -1.35 -0.11 13.17
Spot Silver 18.52 -0.03 -0.16 10.04
Spot Platinum 1508.00 -23.50 -1.53 2.79
Spot Palladium 441.00 -1.00 -0.23 8.75
TOCOM Gold 3532.00 -13.00 -0.37 8.38
31359
TOCOM Platinum 4322.00 -47.00 -1.08 -1.35
27674
TOCOM Silver 53.10 -0.40 -0.75 2.71
245
TOCOM Palladium 1266.00 -31.00 -2.39 8.67
425
Euro/Dollar 1.2216
Dollar/Yen 88.29
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
