* Gold chart trend remains weak as no fresh buyers emerge
* SPDR Gold holdings <XAUEXT-NYS-TT> stay unchanged
* Ultimate support seen at 200-day moving average of $877/oz
By Chikako Mogi
TOKYO, July 13 (Reuters) - Gold prices steadied on Monday
after last week's 2 percent fall, with investors watching the
dollar as the currency's rise and weak oil prices have
heightened concerns about an economic recovery and eroded
bullion's appeal as an inflation hedge.
Traders said gold prices have been increasingly capped as no
fresh buyers have emerged, while those who wanted to buy had
already bought on the market's rally earlier this year and were
now taking profits.
Gold, often seen as a hedging tool, has lost that appeal as
falling oil prices on economic worries have alleviated the need
for an inflation hedge, while the U.S. dollar and U.S. Treasury
bonds are being chosen as a safe haven option over bullion.
"There are fewer and fewer reasons to buy gold," said Tetsu
Emori, a fund manager at Astmax Co Ltd, a top commodities
trading advisor.
"Those investors who helped push up the market are now done
with buying, and there is little need to turn to gold as the
dollar is preferred as a safe haven," he said.
Spot gold <XAU=> was steady at $913.00 per ounce as of 0322
GMT, compared to New York's notional close of $912.15 on Friday.
U.S. gold futures for August delivery <GCQ9> were also
little changed at $913.00 an ounce, compared with $912.50 an
ounce on the COMEX division of the New York Mercantile Exchange.
A commodities sales official at a foreign securities firm
said investors were still liquidating long positions, suggesting
that there was still scope for a further drop in gold prices,
although firm support was seen around gold's 200-day moving
average which currently stands near $877.
Noncommercial net long New York gold futures positions eased
slightly to 164,144 lots in the week to July 7 from 164,186 lots
the weekly Commitments of Traders report by the Commodity
Futures Trading Commission showed. []
But gold was unlikely to lead the drop in markets, with
investors eyeing upcoming data and U.S. second-quarter corporate
earnings results to gauge the economic outlook for the second
half.
"Gold's many characteristics -- as a safe haven, as a
commodity and as a hedge -- are the biggest reason for a lack of
clear direction," the official said.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings stood at 1,109.81
tonnes as of July 10, unchanged from the previous business day.
[]
U.S. stocks fell on Friday, dropping for the fourth straight
week, hurt partly by data showing consumer confidence falling to
its lowest level since March, raising concerns about the
economy. []
The dollar held steady against major currencies on Monday
after rising broadly the previous trading day amid fears of weak
U.S. corporate profits and fading hopes for a global recovery.
[]
Precious metals prices at 0330
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 913.25 1.10 +0.12 3.76
Spot Silver 12.64 -0.01 -0.08 11.66
Spot Platinum 1105.50 1.00 +0.09 18.62
Spot Palladium 232.00 0.00 +0.00 25.75
TOCOM Gold 2726.00 -11.00 -0.40 5.95 28469
TOCOM Platinum 3308.00 -11.00 -0.33 24.74 7568
TOCOM Silver 375.90 -8.40 -2.19 17.73 179
TOCOM Palladium 694.00 -19.00 -2.66 26.18 287
Euro/Dollar 1.3938
Dollar/Yen 92.50
