* Gold steadies a day after hitting seven-month peak
* SPDR Gold Trust holdings hit record-high 1,008.80 tonnes
* Bullion may test $1,000 in near term
By Chikako Mogi
TOKYO, Feb 18 (Reuters) - Gold prices steadied on
Wednesday, taking a breather after hitting a new seven-month
high the previous day when investors fled to safe-haven
investments on growing concerns over the global economy.
Global markets were roiled by a slew of grim reports
showing a slumping Japanese economy and contracting U.S.
economic activity as well as fears Eastern Europe's battered
economies would drag down Western banks. []
[]
Spot gold <XAU=> was trading at $967.35 an ounce, down $1
from the notional New York close after scaling its highest
since July 22 of $973.20 an ounce on Tuesday.
Gold futures for April delivery <GCJ9> on COMEX were up
$1.1 at $968.6 an ounce, after surging to a seven-month high of
$974.90 on Tuesday.
"It's holding up quite well considering the move it had.
Macroeconomic pessimism that was evident in the New York
equities market is providing quite a strong support for gold
for its safe-haven quality," said Toby Hassall, a research
analyst at Commodity Warrants Australia.
Reflecting keen interest in gold, holdings at the world's
largest gold-backed exchange-traded fund, the SPDR Gold Trust
<GLD>, struck a record 1,008.80 tonnes on Tuesday, up 2.3
percent from Friday. []
For graphics on SPDR Gold holdings, click on:
https://customers.reuters.com/d/graphics/MKTS_SPDR180209.jpg
Investors, expecting years of inflation and global economic
instability, are pouring money into securities backed by gold
bullion, helping to turn a simple safe haven into a mainstream
asset class.
U.S. equities <> slipped within a whisker of November's
bear-market low on Tuesday, with financial stocks diving to
14-year lows after Moody's Investors Service said banks could
be hit by the recession in Eastern Europe. []
On Wednesday, Japan's Nikkei <> fell 1.2 percent and
at one point touched a three-month intraday low.
"The precious metals market will look to the equities
market for some support. If American equities extend losses
from recent lows, we may see $1,000 level tested in the near
term," said Hassall.
Bullion has rallied more than 40 percent since tumbling to
a 13-month low of $680.80 in late October, and is just 6
percent below a lifetime high of $1,030.80 struck last March,
when record oil and uncertainties in the dollar's outlook
spurred buying.
PRICES
Precious metals prices at 0250 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 965.80 -2.55 -0.26 9.73
Spot Silver 14.01 -0.09 -0.64 23.76
Spot Platinum 1088.00 0.00 +0.00 16.74
Spot Palladium 215.00 -1.50 -0.69 16.53
TOCOM Gold 2873.00 19.00 +0.67 11.66
22201
TOCOM Platinum 3223.00 48.00 +1.51 21.53
5532
TOCOM Silver 411.90 3.50 +0.86 29.00
166
TOCOM Palladium 650.00 -5.00 -0.76 18.18
178
Euro/Dollar 1.2592
Dollar/Yen 92.19
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 Ben Tan)
