* Bullion hits a low of $999.05, weakest since Sept 15
* SPDR holdings unchanged, dollar steady against euro
(Updates prices, adds details, quotes)
By Lewa Pardomuan
SINGAPORE, Sept 21 (Reuters) - Gold slipped below $1,000 an
ounce for the first time in almost a week on Monday after
failing to revisit last year's record, with sluggish offtake
from jewellers across Asia stepping up the selling pressure.
Gold hit $1,023.85 on Thursday, its strongest since March
2008 when it struck a record of $1,030.80, on uncertainties
over the sustainability of the global economic recovery, but
the dollar's rebound from a 1-year low eventually spurred
selling.
Spot gold <XAU=> was quoted at $1,000.30 an ounce by 0505
GMT, down $5.85 from New York's notional close on Friday.
Bullion, which gained as much as 16 percent this year, fell to
an intraday low of $999.05 an ounce on Monday.
"I think investors are probably a bit cautious. We've got
here, where does it go next? Some people might sort of view now
the upside from here has been more limited," said David Moore,
commodities strategist at Commonwealth Bank of Australia.
"I am a bit of a bear on gold. I think gold would go back
under $1,000. I think the physical demand for gold is still
very weak. When investors start to look elsewhere, I think the
gold price will fall back."
Trading was muted, with Japanese markets closed for a long
holiday but dealers noted selling from speculators in other
parts of Asia, driven by worries over the IMF's plan to sell
gold and a firmer dollar.
The physical market in Singapore was closed for a Muslim
holiday and purchases from jewellers in another bullion trading
centre, Hong Kong, were scarce although gold has dropped more
than 2 percent since hitting last week's multi-month highs.
The U.S. dollar gained against the euro <EUR=> in thin
trade on Monday, extending a rebound late last week on short
covering ahead of a Federal Reserve policy meet on interest
rates and a Group of 20 summit. []
The Federal Open Market Committee is likely to hold rates
steady at the meeting, which starts on Tuesday but markets want
to know if there are signs that the super-accommodative policy
stance will be wound back, given a pick up in economic data.
"I think we're seeing disappointed selling and everybody is
actually expecting a correction after gold reached above
$1,000," said a dealer in Hong Kong.
"Gold may fall back to $995 and we'll have to see whether
it can hold there," said the dealer, referring to a level last
seen in early September.
International Monetary Fund member countries on Friday
formally endorsed a plan for strictly limited sales of 403.3
tonnes of gold from its stockpile but said sales would be done
in a way that did not disrupt gold markets. []
U.S. gold futures for December delivery <GCZ9> fell $8.80
an ounce at $1,001.5 on the COMEX division of the New York
Mercantile Exchange.
The noncommercial net long position in gold futures on
COMEX stood at an all-time high of 235,647 lots for the week
to
Sept. 15, data from the Commodity Futures Trading Commission
showed. []
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings stood unchanged at
1,086.479 tonnes on Sept. 18. <XAUEXT-NYS-TT> []
Precious metals prices 0505 GMT
Metal Last Change Pct chg Day ago pct MA 30
RSI Spot gold $1000.30 -$5.85 -0.58% +11.52% $860.10
42
Spot silver $16.60 -$0.36 -2.12% +38.56% $11.29
69
Spot plat $1322.00 -$5.00 -0.38% -0.19% $1274.08
67
COMEX gold $1001.00 -$8.40 -0.83% -1.15% $970.25
66
Currencies
Euro/dlr $1.468 $0.000 -0.03% -0.17%
Dlr/yen 91.54 0.08 +0.09% +0.28%
(Editing by)
