* SPDR holdings at record, top Swiss as world's 6th largest
* Gold uptrend seen unbroken, eyes on buy triggers
By Chikako Mogi
TOKYO, March 13 (Reuters) - Gold prices edged down on Friday
after rising 2 percent the previous day, but they were supported
by news that holdings of a key gold-backed exchange-traded fund
rose to another record high.
Gold rallied on Thursday when the Swiss National Bank sold
Swiss francs against the euro, raising the spectre of a race to
devalue major currencies. []
"We are still in an uptrend market and if prices rise to $930
today, stops could be triggered to push prices towards $945,"
said a Singapore-based trader.
"The SNB news was positive for gold as you start to wonder
what a real currency is," he said. Gold is widely seen as an
alternative currency and a safe-haven asset.
Spot gold <XAU=> traded at $923.30 an ounce, down 0.4 percent
from New York's notional close on Thursday, when it rose as high
as $930.45. It moved in a narrow range between $926 and $921 per
ounce on Friday and if it stays near current levels it could mark
a fall of about 1 percent for the week.
Gold prices have moved up and down on differing cues from
stocks and currencies, but bullion's safety appeal remains intact
due to the grim outlook for the global economy and more countries
possibly selling their own currencies as a way to fight
deflation, traders said.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said it held a record 1,041.53 tonnes of
bullion as of March 12, replacing Switzerland as the world's
sixth-largest holder of gold. GOL/SPDR]
SPDR's record stake, up 3.36 tonnes or 0.3 percent from the
previous day, topped the 1,040.1 tonnes of gold listed as held by
Switzerland in December, the latest data from the World Gold
Council showed.
Switzerland is listed as the world's sixth-biggest official
gold holder after the United States, Germany, the International
Monetary Fund, France and Italy.
For details of the gold holdings of the ETF listed in New
York and on other exchanges, click on:
http://www.exchangetradedgold.com/iframes/usa.php
"The ETF data is really positive news," the Singapore-based
trader said, noting a positive correlation between market prices
and the fund. When spot prices eased earlier this week, gold ETF
holdings also dipped.
Gold fell as low as $890.30 earlier this week, when a sharp
rebound in stock markets reduced its safe-haven appeal. It rose
to an 11-month high above $1,000 in February, not far from the
all-time high of $1,030.80 set in March 2008.
"Driven by worries about currencies among others, the ETF
increases have become symbolic of a market rise, and the market
is hoping the ETF's resumed climb will help pull up prices," said
Yukuji Sonoda, a precious metals analyst at Daiichi Commodities
in Tokyo.
"If ETF holdings keep climbing the market could retain an
uptrend," he said.
Group of 20 financial leaders meet in England this weekend to
discuss how to fight the global economic crisis. []
With the market focus on investment flows, traders said they
expected little reaction in the gold market from the G20 meeting.
Precious metal prices at 0600 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 923.40 -3.25 -0.35 4.91
Spot Silver 12.98 0.04 +0.31 14.66
Spot Platinum 1053.00 3.50 +0.33 12.98
Spot Palladium 197.00 2.00 +1.03 6.78
TOCOM Gold 2914.00 87.00 +3.08 13.25 37024
TOCOM Platinum 3316.00 99.00 +3.08 25.04 6847
TOCOM Silver 404.70 11.90 +3.03 26.75 346
TOCOM Palladium 628.00 8.00 +1.29 14.18 191
Euro/Dollar 1.2901
Dollar/Yen 97.75
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)
