* Gold inches below $1,090 an ounce
* Funds may take profits after gold hits $1,100
* SPDR Gold holdings unchanged []
By Miho Yoshikawa
TOKYO, Nov 5 (Reuters) - Spot gold inched lower on Thursday
but remained within striking distance of $1,100 an ounce after
hitting an all-time high for the second straight session on a
weak dollar the previous day.
News this week of India's purchase of 200 tonnes of gold from
the International Monetary Fund has also given gold the momentum
to climb back towards $1,100/oz.
That transaction represents about half of a long-planned IMF
bullion sale, and the industry is now wondering who will be
buying the rest of the IMF gold. []
The governor of the Bank of Thailand told Reuters on Thursday
the central bank there had no plans to buy gold from the IMF.
[] He added that the bank does not expect official
interest rates to rise this year because there are still risks to
the economic recovery.
The dollar remains under pressure after falling on Wednesday
after the U.S. Federal Reserve reiterated its commitment to keep
interest rates low for an "extended period." []
Akira Doi, a managing director at Tokyo's Daiichi Commodities
Co Ltd, said gold could fall on profit-taking this month after it
eventually hits $1,100.
"Funds close their books in November, and one should keep in
mind they may decide to pocket profits and sell this month," he
said.
Noncommercial net long positions in U.S. gold futures
remained near a record. []
He added, however, that gold was likely to remain above
$1,000 even if it is hit by profit-taking, noting that India's
purchase from the IMF was made near an average of about $1,045 an
ounce.
"I think that fact will have a psychological impact on the
market ... there is no longer any surprise in seeing a
four-figure price for gold," Doi said.
Bullion also remains attractive as an alternative investment.
"There is also the persistent worry about the economy to
support gold," said Shuji Sugata, a manager at Mitsubishi Corp
Futures Ltd.
Spot gold <XAU=> was at $1,088.45 an ounce at 0540 GMT, down
0.4 percent from New York's notional close of $1,092.35. It rose
to an all-time high of $1,097.25 on Wednesday.
U.S. gold futures for December delivery <GCZ9> were at
$1,089.20 an ounce, up 0.2 percent.
Futures hit a record $1,098.50 on Wednesday.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,108.399 tonnes as
of Nov. 4, unchanged from the previous business day. []
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its bullion holdings stood at
8,740.15 tonnes as of Nov. 4, down 3.85 tonnes or 0.04 percent
from the previous business day. []
Yamana Gold's <YRI.TO> chief executive expects gold prices to
keep breaking records over the next year, but at the same time
acknowledges that rising energy prices and a recovering economy
could drive mining costs higher. []
Other precious metals were also a touch lower.
Spot silver <XAG=> was at $17.33 an ounce compared with
$17.44 in New York.
Spot platinum <XPT=> was at $1,353 an ounce, down from
$1,364, while sister metal palladium <XPD=> was at $326 versus
$327.
Both metals are used as an auto catalyst to clean car exhaust
fumes.
PRICES
Precious metals prices at 0313 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1088.30 -4.05 -0.37 23.65
Spot Silver 17.33 -0.11 -0.63 53.09
Spot Platinum 1353.00 -11.00 -0.81 45.17
Spot Palladium 326.00 -1.00 -0.31 76.69
TOCOM Gold 3176.00 18.00 +0.57 23.44 68768
TOCOM Platinum 3940.00 -2.00 -0.05 48.57 10887
TOCOM Silver 504.20 3.50 +0.70 57.91 331
TOCOM Palladium 960.00 5.00 +0.52 74.55 144
Euro/Dollar 1.4834
Dollar/Yen 90.41
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Chris Gallagher)
