* Gold rises on short covering, holds near record
* For the technical outlook on gold, click on
[]
* Coming Up: New York May Fed Empire State Survey; 1230
GMT
(Updates prices, Indian demand)
By Lewa Pardomuan
SINGAPORE, May 17 (Reuters) - Gold firmed towards a record
on Monday, while bullion priced in euro and sterling struck all
time highs as falling currencies and fears a European bailout
package could hurt, rather than help, a recovery spurred
investor buying.
Holdings of the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust <GLD>, rose to a lifetime high of
1,214.065 tonnes as investors sought a safe haven from volatile
currencies as well as declines in stock markets and oil.
[]
Spot gold <XAU=> was at $1,240.30 an ounce by 0532 GMT, up
$10.25 from New York's notional close on Friday, when it etched
a record of $1,248.95 before slipping. Bullion has gone up
around 13 percent this year.
"Of course gold still looks bullish. I don't know what the
ceiling is. People talk about $1,300, $1,400. We have to break
$1,250 to see new highs," said Ronald Leung, director of Lee
Cheong Gold Dealers in Hong Kong.
While dealers noted short covering from investors, some
jewellers sold back their holdings from cash but in small
quantity, Leung said. "There's a bit of selling in the physical
side. They will be more aggressive when we see a new high."
U.S. gold futures for June delivery <GCM0> added $13.2 per
ounce to $1,241 an ounce. Gold priced in euro <XAUEUR=R> and
sterling <XAUGBP=R> struck record as well as gold futures in
Shanghai <0#SHAU:>
For a graphic of the gold technical outlook, click:
http://graphics.thomsonreuters.com/gfx/CT_20101705094907.jpg
The euro tumbled to a four-year low on Monday on persistent
worries that harsh spending cuts mandated by a $1 trillion
bailout plan may choke off a fragile recovery in the euro zone.
Sterling hit a fresh one-year low against the dollar. []
German Chancellor Angela Merkel said on Sunday the rescue
plan stitched together by the European Union and the
International Monetary Fund only bought time to sort out the
yawning gap between the euro zone's strongest and weakest
economies. [].
In Singapore, dealers noted persistent selling from
jewellers in Indonesia, but there were some inquiries from
investors in Thailand, which could be tied to the deadly
violence in Bangkok. []
"If you like the situation in Europe, it doesn't seem to
get better. Of course gold is still a better bet. We expect
gold to revisit the recent highs," said a physical dealer in
Singapore.
India's gold traders and retailers said late Sunday they
saw large falls in Akshaya Tritiya festival sales, in an
indication demand may remain subdued through the rest of the
year if global prices continue to stay firm. []
In other markets, Japan's Nikkei average slipped more than
2 percent on Monday after the euro hit a four-year trough while
oil fell below $70 a barrel on Monday, to its lowest in more
than three months, on Europe's debts worries and swollen U.S.
oil inventories. [] [] Precious metals prices at 0532 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1240.30 10.25 +0.83 13.20
Spot Silver 19.27 0.02 +0.10 14.50
Spot Platinum 1702.50 -13.00 -0.76 16.05
Spot Palladium 514.50 -9.00 -1.72 26.88
TOCOM Gold 3675.00 -19.00 -0.51 12.76
50767
TOCOM Platinum 5050.00 -111.00 -2.15 15.27
16620
TOCOM Silver 57.50 -0.90 -1.54 11.22
798
TOCOM Palladium 1520.00 -80.00 -5.00 30.47
719
Euro/Dollar 1.2276
Dollar/Yen 91.89
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
