* Gold could drop below $1,080 on view about rates
* SPDR Gold holdings steady, iShares Silver inches up
By Miho Yoshikawa
TOKYO, Jan 28 (Reuters) - Gold steadied around $1,090 per
ounce on Thursday as investors mulled direction after President
Barack Obama laid out plans to revive the U.S. economy in his
State of the Union speech.
Spot gold <XAU=> nudged up 0.2 percent to $1,090.00 per ounce
as of 0609 GMT, compared to New York's notional close of
$1,087.25.
U.S. gold futures for February delivery <GCG0> rose 0.5
percent to $1,090.20 per ounce, compared to $1,087.90 at the
close on the COMEX division of the New York Mercantile Exchange.
Obama vowed to boost job growth and curb exploding deficits,
as he recast his agenda after suffering a political setback.
[]
The economic crisis from late 2008 boosted gold, which
investors bought as a safe-haven asset.
Some market participants also noted that there was a
dissenting voice in the Federal Reserve's decision on Wednesday
to hold rates low.
Kansas City Federal Reserve Bank president dissented because
he wanted the central bank to eliminate a phrase vowing to keep
rates exceptionally low for "an extended period". []
Low global interest rates and concern about inflation were
both instrumental in boosting gold prices to record highs above
$1,220 last December.
Gold is also often bought as a hedge against inflation, which
erodes the value of paper assets.
Kazuhiko Saito, a chief analyst at Tokyo's Fujitomi Co Ltd,
said the investment environment for gold was beginning to look
poor, particularly as an interest rate hike appeared more likely
than it had at one point.
"I think gold might fall below $1,080 as sentiment is not
good for the precious metal," he said.
Industry officials remain bullish over bullion's prospects
for this year, however.
The chairman of Barrick Gold Corp <ABX.TO>, the world's
largest gold producer, said on Wednesday that while gold prices
may be volatile its upward climb was not over. []
Peter Munk was speaking to Reuters Insider television from
the World Economic Forum in Davos.
For the long term, traders and fund managers were on the
whole positive about gold this year, with prices seen averaging
$1,150.50 an ounce in a Reuters poll of 60 analysts.
[]
A Reuters poll also showed that platinum and palladium are
poised to outperform other precious metals this year and next,
with a new wave of investor demand boosting prices in
anticipation of increased industrial use. []
Elsewhere, the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust <GLD>, said its holdings stood at 1,111.922
tonnes as of Jan. 27, unchanged from the previous business day.
[]
In contrast, the world's largest silver-backed
exchange-traded fund, the iShares Silver Trust <SLV>, said its
silver holdings stood at 9,384.98 tonnes as of Jan. 27, inching
up 0.5 percent from the previous business day. []
Precious metals prices at 0612 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1089.95 2.70 +0.25 -0.52
Spot Silver 16.57 0.03 +0.18 -1.54
Spot Platinum 1512.50 10.00 +0.67 3.10
Spot Palladium 413.75 2.25 +0.55 2.03
TOCOM Gold 3172.00 12.00 +0.38 -2.67 52625
TOCOM Platinum 4374.00 52.00 +1.20 -0.16 23341
TOCOM Silver 48.70 -0.40 -0.81 -5.80 480
TOCOM Palladium 1194.00 -18.00 -1.49 2.49 630
Euro/Dollar 1.4013
Dollar/Yen 90.21
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Additional reporting by Chikako Mogi; Editing by Michael
Watson)
