* Buying to emerge on dips unless data alters low-rate view
* SPDR Gold holdings up on Wed, first rise since Nov 3
By Risa Maeda
TOKYO, Nov 19 (Reuters) - Gold edged down on Thursday after
hitting a new record above $1,150 per ounce the previous day when
inflation fears fuelled by stronger-than-expected U.S. consumer
prices added to an already bullish mood.
The dollar gained some ground against a basket of currencies
on Thursday, slightly sapping gold's momentum. The metal is often
bought as an alternative to the U.S. currency. []
Investors were largely on the sidelines ahead of new economic
data, seeking to confirm the widely-held view that that a hike
for U.S. interest rates is still a long way off.
Kaname Gokon, deputy general manager at Japanese commodity
brokerage Okato Shoji Co's research section, said that the
outlook for gold remains strong.
"Any further dips would be supported as buying is expected to
emerge at around $1,120. Nothing will change unless strong U.S.
data dashes the consensus that U.S. interest rates will stay
low," he said.
Spot gold <XAU=> was at $1,144 per ounce at 0627 GMT, down
0.1 percent from New York's notional close of $1,144.70. It fell
as low as $1,139.60, a decline of 0.4 percent.
Bullion hit an all-time high of $1,152.75 on Wednesday,
having notched up record highs in eight of the 12 sessions until
Wednesday, rising nearly 9 percent during the period.
Gold has risen about 30 percent since the start of the year.
U.S. gold futures for December delivery <GCZ9> were steady at
$1,143.00 an ounce after closing on Wednesday at $1,141.20, up
$1.80. The contract hit a record of $1,153.40 on Wednesday.
Volatility may stay high in coming days given a large number
of COMEX December $1,200 call options ahead of their expiry next
Monday. <0#GCc1++>
But buyers of the call options may mostly let them go as it
would be too costly to push up gold prices and make these calls
in the money, Gokon said.
Doubts about a nascent economic recovery and jitters among
central banks, some of which have diversified away from the U.S.
dollar, have raised gold's allure as a safe haven asset.
Nigel Phelan, Australian and New Zealand director of ETF
Securities, said that gold's rally this month was triggered by
the announcement that India will buy 200 tonnes of IMF gold.
[]
"Many market participants view this purchase as just the tip
of the iceberg, with China, Russia and other central banks also
indicating their intention to build up gold holdings as part of
their strategy to diversify away from the U.S. dollar."
"Gold is being viewed as one of the primary alternatives to
holding paper currency and the gold price has become a key
barometer of investor confidence in government policies," Phelan
said in comments emailed to Reuters.
Underlining the metal's strength, holdings by the world's
largest gold-backed exchange-traded fund, SPDR Gold Trust <GLD>,
rose on Wednesday for the first time since Nov. 9.
SPDR Gold said its holdings rose by 3.66 tonnes or 0.3
percent from the previous business day to 1,117.493 tonnes on
Wednesday. []
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its bullion holdings rose to a
record 9,021.31 tonnes on Wednesday, up 67.23 tonnes or 0.75
percent from the previous business day. []
Among other precious metals, spot silver <XAG=> was at $18.51
per ounce, off a 16-month high of $18.83 hit the previous day.
Platinum <XPT=> was at $1,445 after reaching the previous day
$1,463.50, its highest since September 2008.
Palladium <XPD=> was $368.00, off a 15-month high of $376 hit
on Wednesday.
Precious metals prices at 0630 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1143.40 -1.30 -0.11 29.91
Spot Silver 18.51 -0.03 -0.16 63.52
Spot Platinum 1443.50 4.00 +0.28 54.88
Spot Palladium 368.00 -0.50 -0.14 99.46
TOCOM Gold 3289.00 13.00 +0.40 27.83 61344
TOCOM Platinum 4139.00 -28.00 -0.67 56.07 15980
TOCOM Silver 532.00 4.60 +0.87 66.61 526
TOCOM Palladium 1062.00 -3.00 -0.28 93.09 221
Euro/Dollar 1.4922
Dollar/Yen 89.05
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 James Regan in Sydney and Chikako Mogi
in Tokyo; Editing by Edwina Gibbs)
