* Gold near 2-week low as dollar holds gains
* Gold ETF holdings up
* Oil steady ahead of inventory data
(Updates prices)
By Lewa Pardomuan
SINGAPORE, July 9 (Reuters) - Gold fell further on
Wednesday, hovering near its lowest level in almost two weeks
hit the previous day, after a drop in oil prices and a rebound
in the U.S. dollar triggered selling by speculators.
Gold's weakness dragged down silver, while platinum held
near its lowest level in two months amid fears that a slowing
U.S. economy could weaken demand from car makers, dealers said.
Gold <XAU=> slipped to $919.20/920.20 an ounce from
$921.35/922.55 an ounce late in New York on Tuesday, when it
fell as low as $912.50 an ounce, its lowest level since June
27.
Gold was well below a record high of $1,030.80 hit in
March.
"Still, I think there'll probably be support above $900 for
the time being as we get some bargain hunters," said Darren
Heathcote of Investec Australia. "We still have an awful lot of
uncertainty out there, which should help to underpin it for the
time being."
Gold has hit a lifetime high on record-high oil prices
which raise the metal's appeal as a hedge against inflation and
expectations of more interest rate cuts in the United States,
which lifts its appeal as an alternative investment.
The euro was steady at $1.5665 <EUR=>, pulling back from a
two-month high of $1.5910 hit last week after Federal Reserve
Chairman Ben Bernanke said the central bank might extend its
direct lending to Wall Street investment banks. []
Oil <CLc1> was steady at $136.06 a barrel ahead of the
release of U.S. weekly oil inventorydata after tumbling more
than $5. []
While jewellery makers were on the sidelines, dealers said
gains in bullion held by SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, to 658.99 tonnes, within
sight of a record in March, showed some investors were still in
favour of gold <XAUEXT-NYS-TT>.
"From an investment perspective there's still demand
there," said Heatchote of Investec Australia.
India's monsoon season and the absence of major religious
festivals kept the local gold market in the doldrums, while in
other parts of Asia jewellery makers were waiting for a price
correction before buying again. []
Spot platinum <XPT=> rose to $1,953.50/1,973.50 an ounce
$1,940.50/1,960.00 late in New York. It tumbled to a two-month
low of $1,936.50 on Tuesday, well below a record high of $2,290
hit in March on supply fears in main producer South Africa.
"There's light buying out of TOCOM. I mean people sell
Tokyo futures and buy cash, which is why the market rebounds a
bit," said a dealer in Hong Kong. "I guess we will find support
around $1,920," he said.
The most active platinum contract for June 2009 delivery
<0#JPL:> on the Tokyo Commodity Exchange ended the morning
session 91 yen per gram lower at 6,679 yen. It hit an session
low of 6,653 yen, its lowest level since early June.
Spot palladium <XPD=> rose to $439.00/447.00 an ounce from
$437,50/445.50 an ounce late in New York. Silver <XAG=> fell to
$17.75/17.80 an ounce from $17.82/17.88 late in New York.
Gold futures for August delivery <GCQ8> on the COMEX
division of the New York Mercantile Exchange fell $3.0 an ounce
to $920.3.
Precious metals prices at 0241 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 919.05 -0.45 -0.05 10.37
Spot Silver 17.76 0.00 +0.00 20.24
Spot Platinum 1953.50 12.50 +0.64 28.52
Spot Palladium 439.00 2.50 +0.57 19.29
TOCOM Gold 3205.00 -16.00 -0.50 4.74
17023
TOCOM Platinum 6679.00 -91.00 -1.34 25.10
16285
TOCOM Silver 619.40 -1.30 -0.21 14.49
388
TOCOM Palladium 1557.00 -30.00 -1.89 15.25
900
Euro/Dollar 1.5662
Dollar/Yen 107.46
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by)
