* Gold rebounds, ETF strikes another record
* For a technical outlook on gold, click on []
* Coming Up: US ICSC Chain Stores/Wkly; 1145 GMT
(Updates prices)
By Lewa Pardomuan
SINGAPORE, May 11 (Reuters) - Gold rose on Tuesday as the
euphoria ignited by a nearly $1 trillion package to resolve
Europe's debt crisis subsided, ETF holdings hit a new record
high and concern about overall demand by China eased.
Although China's consumer inflation in April rose slightly
more than expected to 2.8 percent, analysts said there were no
signs the country would tighten the economy immediately. A move
to tighten the economy could dent its appetite for commodities.
Gold <XAU=> was at $1,205.00 an ounce, by 0556 GMT, up
$3.10 from New York's notional close on Monday, when it had
slipped below $1,200 after European Union financial ministers,
central bankers and the IMF hammered out an emergency package
for Greece.
For a technical graphic on gold prices, see:
http://graphics.thomsonreuters.com/gfx/WT_20101105090255.jpg
Dealers noted light buying on the physical side, but
overall volume was low and some jewellers in Asia were still
eager to sell back their holdings for cash. Bullion was about 2
percent below a lifetime high of $1,226.10 struck in December
last year.
"I think people don't really buy this rescue package. I
think most of the countries have yet to approve it before they
can release the funds," a bullion dealer in Hong Kong said.
"Sentiment for gold is still bullish. ETF holdings also
rise every day," he added.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at a record high of
1,192.150 tonnes as of May 10, from 1,188.498 tonnes in the
previous business day. []
Gold gained about 2.5 percent last week as investors
ditched the euro on fears the euro zone debt crisis would
spread beyond Greece, increasing bullion's safe haven appeal in
times of uncertainty.
But excitement over the euro zone's $1 trillion rescue
package gave way on Tuesday to doubts whether its weakest
economies can meet their end of the bargain and deliver drastic
debt cuts, driving the euro and stocks lower. []
"Actually, right now gold is consolidating. Gold prices are
quite stable on the high side," said Wong Eng Soon, an
investment analyst at Phillip Futures in Singapore.
China's CPI figures could be supportive for gold because it
reflected a strong purchasing power in the world's
second-largest gold consumer after India, said Wong. "The CPI
figures are high because they are able to buy quite a lot of
things. Gold is one of the things that they buy."
Chinese inflation edged up to an 18-month high in April and
bank lending topped expectations, but the full suite of monthly
data showed an economy that was in robust health and not
overheating as some have feared. []
China also signalled it was ready to let the yuan move more
freely when it said it would manage the currency "with
reference to a basket of currencies," a central bank adviser
said in remarks published on Tuesday. []
[]
U.S. gold futures for June delivery <GCM0> added $5.0 an
ounce to $1,205.8 an ounce.
Precious metals prices at 0556 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1205.00 3.10 +0.26 9.98
Spot Silver 18.41 -0.03 -0.16 9.39
Spot Platinum 1680.00 -13.00 -0.77 14.52
Spot Palladium 518.50 -10.50 -1.98 27.87
TOCOM Gold 3602.00 20.00 +0.56 10.52
73117
TOCOM Platinum 5044.00 -19.00 -0.38 15.13
26051
TOCOM Silver 55.30 -0.20 -0.36 6.96
587
TOCOM Palladium 1545.00 -18.00 -1.15 32.62
1181
Euro/Dollar 1.2728
Dollar/Yen 92.68
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Ed Lane)
