* Gold rises in rebound from previous day's fall
* Tracks dlr as investors sidelined, jewellery demand weak
* SPDR Gold holdings <XAUEXT-NYS-TT> steady
By Chikako Mogi
TOKYO, July 3 (Reuters) - Gold rose on Friday and hovered
above $930 per ounce, with investors keeping an eye on the
dollar, which rose the previous day when bleak U.S. jobs data
enhanced the dollar's safe-haven appeal and hurt bullion.
Gold tracked the dollar, inching higher as the U.S. currency
trimmed earlier gains against the euro, but rises were limited as
investors stayed on the sidelines and jewellery demand was weak.
"Gold is up today in a rebound from yesterday's fall but
basically the market is tracking the dollar," said Ronald Leung,
director of Lee Cheong Gold Dealers in Hong Kong.
"The market is likely to be dead with the U.S. holiday and
nothing new coming out of Europe. Investors are not in the market
and jewellery is not performing well," he said.
Gold <XAU=> rose 0.5 percent to $933.35 per ounce, compared
with New York's notional close of $928.65 on Thursday.
U.S. gold futures for August delivery <GCQ9> rose 0.3 percent
to $933.4 an ounce, compared with $931.0 on the COMEX division of
the New York Mercantile Exchange.
U.S. financial markets are closed on Friday for the
Independence Day holiday.
Traders said if gold prices managed to reach $950 it could
give them incentives to test the market's upside.
Reflecting a slowdown in investments, the world's largest
gold-backed exchange-traded fund, the SPDR Gold Trust <GLD>, said
holdings were 1,120.55 tonnes as of July 2, unchanged from the
previous business day. []
Indian data showed the country's gold imports stood at about
59.8 tonnes in the first six months this year, down 57 percent
from the same period last year. India's gold imports in June were
likely around 8 to 10 tonnes, down 24 tonnes from the same month
a year ago, a senior official from Bombay Bullion Association
said this week. []
The European Central Bank kept interest rates at 0.1 percent
on Thursday, bolstering expectations they will stay there well
into next year. ECB President Jean-Claude Trichet gave no sign
the ECB was planning to move rates from the current record low
level soon, saying they remained "appropriate". []
Gold fell on Thursday as worse-than-expected U.S. jobs data
dented gold's appeal as a hedge against inflation and bolstered
the dollar. The dollar gained as bleak economic recovery
prospects enhanced the U.S. currency's safe-haven attraction.
A rise in the dollar weakens investors' need to use bullion
as a hedge against falls in the value of dollar-denominated
assets and weighs on gold prices.
The dollar was up 0.1 percent against the euro and nearly
flat against the yen on Friday. []
PRICES
Precious metals prices at 0243 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 933.15 4.50 +0.48 6.02
Spot Silver 13.41 0.03 +0.22 18.46
Spot Platinum 1181.00 -0.50 -0.04 26.72
Spot Palladium 250.00 1.00 +0.40 35.50
TOCOM Gold 2890.00 -40.00 -1.37 12.32 28515
TOCOM Platinum 3666.00 -48.00 -1.29 38.24 5847
TOCOM Silver 414.00 -12.90 -3.02 29.66 290
TOCOM Palladium 784.00 -7.00 -0.88 42.55 98
Euro/Dollar 1.3987
Dollar/Yen 95.94
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Watson)
