* Gold dented as dollar rises broadly
* Risk asset recovery reassessed, mkt also eyes Fed meeting
* SPDR gold ETF holdings <XAUEXT-NYS-TT> flat since June 5
(Adds quotes, updates prices)
By Veronica Brown and Nick Vinocur
LONDON, June 22 (Reuters) - Gold fell around 0.8 percent on
Monday, heading towards $920 per ounce, with dollar strength
against a basket of major currencies sapping the appeal of
bullion and other commodities priced in the U.S. unit.
Spot gold <XAU=> dropped to $925.60 an ounce at 1207 GMT,
having earlier hit a intraday low of $921.30. That compared with
$933.80 quoted late on Friday in New York. The price was fixed
or set in London earlier on Monday at $924.00.
The dollar <.DXY> gained at the expense of higher-yielders
normally associated with risk seeking behaviour, reflecting
investor concern about global growth prospects and jitters ahead
of the U.S. Federal Reserve's rate setting meeting -- a factor
that was seen supporting gold at the lower levels.
"This whole rebound in sentiment has run into concerns over
the extent of real improvement in the economy," Calyon analyst
Robin Bhar said.
"I don't really see too much more downward movement (in
gold) from here, as physical demand will reappear at these
levels."
The Fed was not expected to adjust monetary policy at its
meeting this week, but investors will keep a keen eye on its
statement for clues on the economic outlook and progress of its
debt buyback programme.
In early June, a weakening dollar and increasing demand for
gold-backed funds helped bullion hit a three-month high of
$989.80 an ounce. But the dollar has since pared its losses,
dulling some of gold's allure as an alternative investment.
Easing crude prices <CLc1> also helped diminish appetite for
gold as a hedge against oil-induced inflationary concerns.
INVESTMENT TAILS OFF
In other metals, silver followed gold lower <XAG=>, falling
to $13.83 from $14.19 late on Friday in New York. Platinum was
bid at $1,188.50 per ounce <XPT=>, while palladium stood at $239
<XPD=>.
Gold's three-week decline, partly due to selling related to
the unwinding of long positions in U.S. gold futures, has
discouraged fresh buying, traders said.
U.S. gold futures for August delivery <GCQ9> fell 1 percent
to $926.70 per ounce from Friday's settlement on the COMEX
division of the New York Mercantile Exchange.
A weekly report by the U.S. Commodity Futures Trading
Commission showed noncommercial net long U.S. gold futures
positions fell 7.5 percent to 175,543 lots in the week to June
16 from 189,674 lots the week before []
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings stood at 1,132.15
tonnes as of June 19, unchanged since June 5. []
ETF Securities also said on Monday the amount of gold it
holds to back its Gold Bullion Securities exchange-traded
commodity fell around 45,000 ounces on June 19. []
Investors are in a period of re-adjustment, analysts said,
as earlier bets on riskier assets including global share markets
<.MIWD00000PUS> may been overdone in light of persistent global
growth concerns.
"Anyone expecting a rapid v-shaped recovery is in for a bit
of a disappointment," said Simon Weeks, director, precious
metals sales at Scotia Mocatta in London.
(Reporting by Veronica Brown; Editing by William Hardy)
