* Gold takes cue from dollar as investors grow risk averse
* SPDR Gold holdings <XAUEXT-NYS-TT> fell 0.03 pct on Monday
By Risa Maeda
TOKYO, July 7 (Reuters) - Gold prices were little changed on
Tuesday, hovering below $930 per ounce as growing doubts about
prospects for a quick sustainable recovery in the global economy
helped halt the dollar's fall against major currencies.
Trade was subdued in a market that has been hurt by a weak
U.S. jobs report last week and which is awaiting fresh direction
from a G8 meeting later this week. []
Spot gold <XAU=> inched down to $923.80 per ounce as of 0542
GMT, compared with New York's notional close of $924.00.
"Gold is now largely at a standstill, a situation similar to
other markets. That's because it is yet to be known how far to
correct the overly optimistic views on the economy," said
Tatsufumi Okoshi, a senior economist at Nomura Securities, adding
that gold may be caught in a range of $900-$950 for the time
being.
Gold hit a two-week low of $920.10 on Monday hurt by a
stronger dollar, as investors sought out the global reserve
currency over bullion as a safe store of value amid fears about
the outlook for the U.S. economy.
Gold has retreated by more than 6 percent from a four-month
high near $990 struck in early June.
The U.S. currency edged up 0.1 percent versus the euro <EUR=>
on Tuesday, moving closer to a two-week high marked the previous
day. []
"Doubts over the strength of the U.S. economy increased the
allure of the dollar as a safe asset and that in turn has been
putting pressure on gold," said Okoshi.
Bargain hunters resurfaced in India, the world's biggest
bullion consumer, as gold slipped this week, but jewellers in
other parts of Asia are hoping for more of a price correction
after bullion failed to sustain recent gains, dealers said.
[]
A trader at an European securities firm said a fall in
commodities prices has also reduced gold's appeal as a hedge
against inflation.
"In the short term, the market looks weak technically and
there's weakness in physical demand," the trader said, adding
that $900 continues to be a strong support as buyers from India
and China consistently emerge around that level.
The trader also said while all upside stop orders had been
cleared, there were also no downside stop orders, suggesting that
players still believed there was scope for a rebound in gold
prices over the longer period.
U.S. gold futures for August delivery <GCQ9> fell $0.4 to
$923.90 per ounce. On Monday the contract fell $6.70 on the COMEX
division of the New York Mercantile Exchange.
Non-commercial net long New York gold futures positions fell
to 164,186 lots in the week to June 30 from 166,294 lots, the
weekly Commitments of Traders report issued by the Commodity
Futures Trading Commission showed late on Monday. []
The net long positions have fallen from a peak of 189,674
lots marked in the week to June 9.
Holdings by the world's largest gold-backed exchange-traded
fund, the SPDR Gold Trust <GLD>, fell 0.03 percent on Monday,
another factor suggesting receding investor appetite. []
The holdings stood at 1,120.19 tonnes as of July 6, down
13.84 tonnes or 1.2 percent from a record 1,134.03 tonnes marked
on June 1.
Precious metals prices at 0548
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 923.80 -0.20 -0.02 4.96
Spot Silver 13.24 0.00 +0.00 16.96
Spot Platinum 1146.50 3.50 +0.31 23.02
Spot Palladium 239.50 0.50 +0.21 29.81
TOCOM Gold 2842.00 -16.00 -0.56 10.45 32815
TOCOM Platinum 3539.00 -49.00 -1.37 33.45 15126
TOCOM Silver 408.20 -0.10 -0.02 27.84 330
TOCOM Palladium 745.00 -9.00 -1.19 35.45 139
Euro/Dollar 1.3965
Dollar/Yen 95.33
(Additional reporting by Chikako Mogi; Editing by Edwina Gibbs)
