* Gold slips on profit taking after rising over 2 pct
* ETF gold holdings strike new record
* Dollar and yen hold onto gains
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Feb 11 (Reuters) - Gold slipped on Wednesday
after posting its biggest daily percentage gain in nearly two
weeks on safe-haven buying sparked by scepticism over a new
U.S. bank rescue plan, while ETF holdings hit another record.
Investors are keeping a close eye on the revamped emergency
plan, which may cost more than $2 trillion, because it will
potentially curb bullion's appeal if it turns out to be
effective in helping reverse the global economic downturn.
[]
Gold <XAU=> was trading at $910.45 an ounce, down $4.05
from New York's notional close on Tuesday, when it gained hit a
session high of $918 after U.S. stocks plunged on concerns
about a lack of detail in the bailout package.
"Gold more or less seems to be wobbling around the key
zone of $900 and is refusing to significantly move in either
direction," said Pradeep Unni, a senior analyst at Richcomm
Global Services.
"On the higher side, a confirmative close above $933 is a
must for any sustained upward trajectory," said Unni, referring
to a high seen last July.
Dealers attributed Wednesday's decline to profit taking but
sentiment was still bullish as holdings in the world's largest
gold-backed exchange-traded fund, the SPDR Gold Trust <GLD>,
rose for a second consecutive day to a record of 894.72 tonnes
on Feb 10. []
"Gold becomes a safe haven for a lot of people," said David
Moore, commodities strategist at Commonwealth Bank of Australia
in Sydney, adding that the metal could eventually recapture
$1,000.
"You couldn't say it's not possible. I think if it did go
above $1,000, it would probably not be sustained there because
already we are seeing the fact there's some scrap selling as a
result of the high gold price."
Bullion has rallied more than 30 percent since tumbling to a
13-month low of $680.80 in late October, and is about 12
percent below a lifetime high of $1,030.80 struck last March,
when record oil and uncertainties in the dollar's outlook
spurred buying.
Sales of scrap gold have picked up in Asia and dealers also
noted selling by investors in China, which put pressure on
prices during Asian trading. Jewellery trading has slowed to a
trickle in main consumer India due to high prices. []
"Economic pressures in some countries might also ultimately
contribute to some scraps sales as well," said Moore.
In other markets, the U.S. dollar and the yen held onto
hefty gains on Wednesday as investors took shelter in the
currencies after Washington's bank bailout package proved long
on promises but short on specifics. []
Oil <CLc1> rose to $38 a barrel on Wednesday, having fallen
5 percent the previous session, after the industry group
American Petroleum Institute's weekly inventory data showed
crude stockpiles had fallen unexpectedly. []
Tokyo precious metals futures were closed for a holiday,
and investors may also scrutinise a series of data to be issued
later on Wednesday, including U.S. International Trade for
December and the U.S. Federal budget for January.
Platinum <XPT=> was trading $3 higher at $1,035 an ounce,
having rallied to $1,039.50 on Tuesday, its strongest since
mid-October, to track gold's gains. PRICES Metal Last
Change Pct chg Day ago pct MA 30 RSI Spot gold
$910.45 -$4.05 -0.44% +1.50% $860.10
61 Spot silver $13.12 $0.02 +0.15% +9.52%
$11.29 74 Spot plat $1035.00 $3.00 +0.29% +4.60%
$964.80 76 COMEX gold $912.00 -$1.70 -0.19% +2.21%
$874.78 60 Currencies
Euro/dlr $1.290 -$0.011 -0.85% -0.48%
Dlr/yen 89.93 -1.53 -1.67% -2.06%
(Editing by Ben Tan)
