* Gold falls below $1,190, then bounces
* For the technical on gold, click []
* Coming Up: U.S. Fed Chairman Bernanke testifies; 1800
GMT
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, July 21 (Reuters) - Gold edged down on Wednesday
as investors shifted some of their money into firming equities,
while a drop in ETF holdings could prompt more selling as
bullion struggles to hold above $1,190 an ounce.
Although purchases from jewellers offered some support,
trading was thin ahead of euro zone bank stress test results
this week, which some analysts say could soothe concerns about
how European banks would cope with deterioration in the
region's economy and financial markets.
Spot gold <XAU=>, which hit a low of $1,189.65 on
Wednesday, fell 80 cents to $1,190.60 by 0325 GMT. It dropped
to a 2-month low at $1,175.35 on Tuesday before rebounding
sharply to above $1,190 on chart-based buying. Gold struck a
record in late June on worries the European debt crisis would
spread.
For a 24-hour spot gold technical outlook, see:
http://graphics.thomsonreuters.com/WT/20102107091033.jpg
"I think the market is heading south for the short term.
Only a weakening dollar can push up the market a little bit. If
it can't break $1,200 in the coming days, it will test the
downside one more time," said Ronald Leung, director of Lee
Cheong Gold Dealers in Hong Kong.
"I would say, it would gradually fall to $1,150," said
Leung, referring to a level last seen in late April.
U.S. gold futures for August delivery <GCQ0> barely moved
at $1,191.4 an ounce.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P> said its holdings fell nearly 0.5 percent to
1,308.128 tonnes by July 20 from 1,314.211 on July 15. The
holdings hit a record at 1,320.436 tonnes on June 29.
[]
"The market is relatively quiet. Buying from Thailand
continues but I must say they are not really active," said a
physical dealer in Singapore. "Premiums for gold bars are
stable at 80 cents."
The Nikkei firmed on Wednesday after U.S. stocks rose for a
second consecutive day, led by gains in shares of Goldman Sachs
and strength in beaten-down homebuilder and raw material
companies. [] []
The euro inched up against the dollar ahead of euro zone
bank stress test results this week and U.S. Federal Resesrve
Chairman Ben Bernanke's semi-annual testimony before Congress
on Wednesday and Thursday, with investors waiting for comments
that could boost speculation about more monetary accommodation.
[]
"The upside is kept at a recent high $1,194 but I think the
market lacks direction. The market is waiting for the stress
result in Europe," said a dealer in Hong Kong. "I still have
bearish views on the market even though it has rebounded form
recent lows."
Europe's assessment of how 91 banks would cope with another
economic downturn aims to restore market confidence after the
Greek crisis sparked fears the euro zone could unravel and
leave banks nursing major losses on government debt.
[]
Precious metals prices at 0325 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1190.60 -0.80 -0.07 8.66
Spot Silver 17.72 0.07 +0.40 5.29
Spot Platinum 1508.00 -4.95 -0.33 2.79
Spot Palladium 450.00 0.47 +0.10 10.97
TOCOM Gold 3349.00 26.00 +0.78 2.76
29293
TOCOM Platinum 4264.00 2.00 +0.05 -2.67
9491
TOCOM Silver 50.30 0.00 +0.00 -2.71
298
TOCOM Palladium 1271.00 19.00 +1.52 9.10
214
Euro/Dollar 1.2890
Dollar/Yen 87.20
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Himani Sarkar)
