* 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
(Updates prices)
By Chikako Mogi
TOKYO, July 13(Reuters) - Gold prices eased 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 profit.
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 adviser.
"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=> inched down to $909.35 per ounce at 0640
GMT, compared with New York's notional close of $912.15 on
Friday.
U.S. gold futures for August delivery <GCQ9> were also a
touch softer at $909.30, 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 there was still scope for a further drop in gold
prices, though firm support was seen around gold's 200-day
moving average which stands near $877.
Non-commercial 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 on 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 yen rose against the euro and the Australian dollar on
Monday, drawing support from falls in Asian equities that
dovetailed with receding optimism about the chances for a quick
recovery in the global economy. []
Precious metals prices at 0641 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 909.40 -2.75 -0.30 3.32
Spot Silver 12.55 -0.10 -0.79 10.87
Spot Platinum 1091.50 -13.00 -1.18 17.11
Spot Palladium 232.00 0.00 +0.00 25.75
TOCOM Gold 2704.00 -33.00 -1.21 5.09
42511
TOCOM Platinum 3253.00 -66.00 -1.99 22.66
13793
TOCOM Silver 370.80 -13.50 -3.51 16.13
305
TOCOM Palladium 697.00 -16.00 -2.24 26.73
356
Euro/Dollar 1.3915
Dollar/Yen 92.24
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 Miho Yoshikawa; Editing by Ben Tan)
