* Gold still above $1,200; has rallied 15 pct since early Nov
* SPDR Gold holdings edge up, iShares Silver at record
By Risa Maeda
TOKYO, Dec 4 (Reuters) - Gold fell on Friday as investors
locked in profits after the precious metal topped $1,220 an ounce
the day before to mark a record high for the third straight day.
Investors also held off further buying of gold, which has
risen more than 15 percent in the past month, as they cautiously
awaited the monthly U.S. non-farm payrolls report due later in
the day.
"Gold gained momentum as it broke above $1,200 and rose to
$1,210 and $1,220, triggering a round of short-covering (to cut
further losses)," said Koichiro Kamei, managing director at
financial research firm Market Strategy Institute in Tokyo.
"It doesn't seem to have hit a ceiling yet, but the recent
run-up first inspired by the Nov. 2 news of India's central bank
buying has gone quite far. It's now running out of steam," he
said.
India bought about half the International Monetary Fund's
planned sales of 403.3 tonnes of gold, which fanned views that
more central banks need to diversify their assets into the metal.
[]
Spot gold <XAU=> was at $1,201.55 an ounce at 0452 GMT, down
0.5 percent from New York's notional close of $1,207.10.
It was poised to rise about 2 percent on the week, extending
gains for a fifth consecutive week.
U.S. gold futures for February delivery <GCG0> fell 1.3
percent to $1,202.80 an ounce.
Bullion rose to an all-time high $1,226.10 on Thursday,
bringing its gains so far this year to 40 percent, driven by
central bank buying, a weakening dollar and inflation worries.
But further buying was checked by news on Thursday that
European Central Bank President Jean-Claude Trichet laid out a
package of decisions on ending and tightening up the measures the
ECB has taken to boost liquidity to the banking sector.
[]
Also, the New York Federal Reserve on Thursday conducted a
small reverse repurchase agreement transaction to test the
cash-draining tool.
But many market players maintained their bullish views on
gold as central banks in major economies are expected to keep
interest rates low for a while to support a shaky recovery in the
economy.
A glut of liquidity in the financial system has helped
increase investors' risk tolerance and boost volatility in many
markets, including gold's.
"The ECB's move just marks the beginning of an end and has
been widely expected. The recent rally in gold was built on
expectations that the ECB will move ahead of the Fed," said Kamei
of Market Strategy Institute.
A poll of 33 analysts, traders and funds conducted by Reuters
this week found that most believe gold prices are in for a
correction before the end of the year, though the precious
metal's bull run is still believed to be intact. []
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings rose 0.276 tonnes to
1,131.490 tonnes on Thursday. []
That is near a record high of 1,134.03 tonnes hit on June 1.
The world's No.1 silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its silver holdings rose 113.05
tonnes or 1.2 percent to a record 9,514.35 tonnes on Thursday.
[]
The U.S. employment report, due at 1330 GMT, is expected to
show payrolls shed fewer jobs in November than October.
Economists polled by Reuters gave a median estimate of
130,000 jobs lost in November, compared with 190,000 in October,
when unemployment hit a 26-year high of 10.2 percent.
Precious metals prices at 0450 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1201.50 -5.60 -0.46 36.51
Spot Silver 18.71 -0.09 -0.48 65.28
Spot Platinum 1476.00 -4.50 -0.30 58.37
Spot Palladium 380.00 -0.50 -0.13 105.96
TOCOM Gold 3413.00 -39.00 -1.13 32.65 67586
TOCOM Platinum 4191.00 -43.00 -1.02 58.03 11906
TOCOM Silver 533.00 -11.00 -2.02 66.93 347
TOCOM Palladium 1083.00 -22.00 -1.99 96.91 273
Euro/Dollar 1.5056
Dollar/Yen 88.06
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Miho Yoshikawa; Editing by Chris
Gallagher)
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