* Gold rises above $920/oz, tracks Wall St rally
* Silver hits 10-week low on economic concerns
* Gold-silver ratio above 70
(Recasts, updates with quotes, closing prices, market
activity, adds LONDON to dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, July 13 (Reuters) - Gold futures rallied
above $920 an ounce on Monday, as solid gains in the stock
market sparked a technical rally in the metal, but further
gains could be capped by a lack of inflation-hedge and risk
aversion demand.
A closely watched gold-to-silver ratio has recently jumped
as silver tumbled as lingering economic fears weighed heavily
on the white metal's status as a key component in the
electronics sector.
Gold has held above $900 an ounce but lost nearly $20 to
reach a two-month low last week. The yellow metal was weighed
down by deflation fears and broad-based commodities weakness
stemming from U.S. regulatory pressure to limit speculation in
energy and metals markets.
"The tendency for the last couple of weeks is that the gold
market followed stocks. It is certainly a (gold) rally but the
resistance has not been broken," said Leonard Kaplan, president
of the Illinois-based Prospector Asset Management.
Wall Street rallied 2 percent on Monday on more optimistic
outlook about the banking and financial sector, after the U.S.
equities market has declined in the past four weeks.
U.S. August gold futures <GCQ9> settled up $10, or 1.1
percent, at $922.50 an ounce on the COMEX division of the New
York Mercantile Exchange.
Spot gold <XAU=> was at $919.40 an ounce at 3:15 p.m. EDT
(1915 GMT), against $912.15 an ounce late on Friday.
OUTLOOK VULNERABLE
Gold, which fell 2 percent last week as dollar strength and
losses in other commodities pressured prices, was seen as
vulnerable to further losses from here, with the $900 an ounce
level of support keenly eyed.
"I don't expect prices to stabilize here," said Commerzbank
analyst Eugen Weinberg. "We will see a stronger dollar, and we
will see gold below $900, which will trigger further technical
selling."
Inflows into gold-backed exchange-traded funds have eased
dramatically since the first quarter.
Holdings of the largest, New York's SPDR Gold Trust <GLD>,
were unchanged for a second consecutive session on Friday
following decline last week. []
Other precious metals also slipped, with silver tracking
gold and base metals down to hit a fresh 10-week low of $12.44
an ounce. It was last at $12.81 an ounce against its late
Friday New York quote of $12.65. The gold-silver ratio has
risen to 73 from about 62 in early May.
Analysts said that a rising gold-silver ratio could
foreshadow further losses in the precious metals complex, but
others said that it was simply because of heavy profit-taking
following the metal's sharp rally toward $16 an ounce in early
June.
"The decline in the Comex net speculative long position has
accompanied an increase in the gold/silver ratio," said UBS
analyst John Reade in a note. "Further long liquidation on
Comex could see this ratio back up towards 80."
Silver's 5 percent price fall last week has helped take its
14-day relative strength index -- a measure of how overbought
or oversold a commodity is, with an RSI of 30 or less
suggesting a metal's price fall has gone too far -- to under 15
on Monday.
Platinum <XPT=> was at $1,110.50 an ounce against
$1,104.50, while palladium <XPD=> was at $233 against its
previous finish of $232.
