* Gold dips below $920, ETF stays just below record
* Weak jewellery fabrication demand weighs on market
By Chikako Mogi
TOKYO, March 10 (Reuters) - Gold dipped on Tuesday, falling
below $920 after sinking more than 2 percent in the previous
session, as weaker demand for jewellery weighed on sentiment.
Worries about the deepening global recession and the
financial system helped gold keep its appeal as a safe haven,
though it has been undergoing consolidation after peeping above
$1,000 last month for the first time in nearly a year.
Gold prices, which often move in the opposite direction to
the dollar, had risen along with the dollar as investors fled
assets seen as more risky. But gold prices fell on Monday as
recession fears and banking concerns prompted investors to divert
money out of gold and into U.S. Treasuries.
"Gold strength relies on strength in investment flows, which
are relatively inconsistent," said David Moore, a commodity
strategist at Commonwealth Bank of Australia.
"Flows of investment in gold are variable and changeable with
different conditions. They have been affected by moves in other
markets as well as economic and financial worries -- it has waxed
and waned."
Spot gold <XAU=> was at $916.60 an ounce as of 0245 GMT, down
0.5 percent from New York's notional close on Monday. Prices are
now down about 9 percent from the 11-month high above $1,000
marked on Feb. 20. It hit a record of $1,030.80 hit in March
2008.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings stood at 1,028.99 tonnes as
of March 9, unchanged from March 8 when they dipped for the first
time since January. []
That decline was 0.3 tonnes or 0.03 percent from the record
1,029.29 tonnes first hit on Feb. 26.
Traders say investors have been becoming cautious after
prices rose above $1,000, and given that current price levels are
relatively high they are likely to be prompted to take profits,
slowing buying momentum as prices inch nearer the $1,000 level.
Safe haven moves into gold have eased, possibly reflecting
different perceptions about the need for safe haven assets, Moore
said.
Higher gold prices and the global recession have hit gold
jewellery buying in traditionally strong markets, traders said.
Gold jewellery buying accounts for about 60 percent of total gold
demand.
The dollar fell against the euro and other major currencies
on Tuesday, retracing some of the previous day's steep gains, as
investors paused to assess the risk outlook and Asian share
markets showed a mixed picture.
A stronger dollar makes metals more expensive for holders of
other currencies.
Precious metals prices at 0250 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 916.70 -4.25 -0.46 4.15
Spot Silver 12.88 -0.04 -0.31 13.78
Spot Platinum 1051.00 -7.00 -0.66 12.77
Spot Palladium 193.00 -1.00 -0.52 4.61
TOCOM Gold 2925.00 -54.00 -1.81 13.68 23646
TOCOM Platinum 3336.00 -39.00 -1.16 25.79 3834
TOCOM Silver 405.00 -11.00 -2.64 26.84 309
TOCOM Palladium 625.00 -14.00 -2.19 13.64 170
Euro/Dollar 1.2648
Dollar/Yen 98.88
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)
