* Gold inches down on profit taking after 2 pct gain
* ETF holdings hit new record above 843 tonnes
* Nikkei down 3.4 pct, dollar up, oil steady
* Silver strikes 4-month high before slipping
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Jan 30 (Reuters) - Gold edged down on Friday as
speculators booked profits after prices rallied more than 2
percent the previous day, but buying interest from investors
remained strong, with ETF holdings hitting another record.
Platinum dropped more than 1 percent on fears of falling
demand after Ford Motor Co <F.N> reported a record loss, while
silver rallied to its strongest in four months before slipping
to track weaker gold.
Gold <XAU=> was trading at $905.70 an ounce, down $1.05
from New York's notional close on Thursday, when it jumped more
than 2 percent after U.S. stocks tumbled on fears of a
worsening recession.
Gold held near a 3-month high of $915.30 hit on Monday but
some dealers were cautious as high prices blunted demand from
the jewellery sector, which accounts for nearly 70 percent of
consumption. Imports by main consumer India also shrivelled
more than 90 percent, to 1.2 tonnes, in January.
[]
"As the prices rise due to investment demand, enquiries
have certainly increased in the physical markets, but it hasn't
resulted in any significant take off from the markets," said
Pradeep Unni of Richcomm Global Services in Dubai.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said it held arecord 843.59 tonnes of
gold on Jan. 29, up 10.71 tonnes fromJan. 27, reflecting
flight-to-quality buying amid financial sector chaos.
[]
For details of gold holdings by the ETF listed in New York,
click on:
https://customers.reuters.com/d/graphics/MKTS_SPDRGLD0109.jpg
Despite slow buying from jewellers, dealers said changes in
gold ETF holdings could be a bullish signal as they show
longer-term retail investors are entering the market.
Volatile stock and currency markets prompted the funds to
shift their money back into gold for better returns, said
Yukuji Sonoda, precious metals analyst at Daiichi Commodities
in Tokyo.
"The next target is of course $1,000," said Sonoda,
referring to a level last seen in March, when gold struck a
record $1,030.80 on fund buying driven by fears of rising
energy costs and uncertainties in the dollar's outlook.
"Silver is also very interesting. Actual buying is a good
support for the price," said Sonoda, adding that the white
metal also benefited from investment buying.
Silver's appeal as a refuge for investors worried about
financial instability will help it perform better than its
rivals platinum and palladium, a Reuters survey showed.
[]
In other markets, the Nikkei <> shed 3.1 percent on a
firmer yen and recession worries. Adding to the gloom, Japanese
industrial production fell a record 9.6 percent in December,
while core annual inflation slowed to 0.2 percent. []
The euro slipped to $1.2904 <EUR=> on risk aversion.
[]. Oil <CLc1> was steady above $41 a barrel on concerns
about a potential strike among unionised U.S, refinery workers.
[]
Platinum <XPT=> was trading at $962.50 an ounce, down
$10.00 from New York's notional close as worries about falling
demand resurfaced for the metal, which is mainly used in
autocatalysts to clean exhaust fumes.
Ford Motor Co <F.N> reported a record $14.6 billion
full-year loss on Thursday but said it would have the cash to
survive the worst auto sales downturn in decades without a U.S.
government bailout. []
PRICES
Metal Last Change Pct chg Day ago pct MA 30
RSI
Spot gold $905.70 -$1.05 -0.12% +0.97% $860.10
70
Spot silver $12.27 -$0.04 -0.32% +2.42% $11.29
79
Spot plat $962.50 -$10.00 -1.03% +1.00% $951.55
62
COMEX gold $907.80 $2.10 +0.23% +2.21% $860.47
68
TOCOM gold 2,611 62 +2.43% +1.08% 2,484
57
TOCOM plat 2,774 31 +1.13% +1.24% 2,672
52
Currencies
Euro/dlr $1.290 -$0.023 -1.79% -2.09%
Dlr/yen 89.42 -0.96 -1.06% +0.56%
(Editing by Clarence Fernandez)
