PRECIOUS-Gold extends losses, ETF holdings at new record

                                
 SINGAPORE, Feb 3 (Reuters) - Gold extended losses on
Tuesday, having posted its biggest daily percentage fall in
three weeks the previous day on profit taking, but record
exchange traded fund holdings still boosted sentiment.
                                
 FUNDAMENTALS
                                
 * The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said it held arecord of 853.37 tonnes of
gold as of Feb. 2, up 9.78 tonnes fromJan. 29. [GOL/SPDR]
                                
 * Gold <XAU=> was trading at $901.70 an ounce, down $1.45
from New York's notional close on Monday, when it dropped more
than 2 percent in selling also driven by weak demand from the
jewellery sector. Gold hit a near four-month high of $930.40 on
Friday.
                                
 * The volume of gold jewellery sales in Abu Dhabi slid 70
percent in January as rising prices crimped buying, according
to an industry group. [ID:nL1448571]
                                
 * India gold futures could hit new highs this week on
expectations of a recovery in crude oil and a weaker rupee but
weak physical off-take in the domestic markets could limit the
upside. [GOL/IN]
                                
 COMMENTARY
                                
 * A sharp inflow to gold exchange-traded funds and
short-term buyers spurred gold's rally last week, but
profit-taking by Chinese traders returning from a one-week
Lunar New Year break led to selling.
                                
 * Analysts say prices will be underpinned by investors
looking for a safe place to park their assets, awayfrom the
turbulence in equity markets.
                                
 CROSS-MARKET ACTION
                                
 * Japan's Nikkei stock average edged down 0.1 percent on
Tuesday, with Mitsubishi UFJ Financial Group <8306.T> lower
after media reported that the bank, Japan's biggest, will cut
its annual forecast. [.T]
                                
 * The Dow Jones and S&P 500 indexes ended lower on Monday
as uncertainty about the Obama administration's plan to stem
bank losses hit financial shares and a bleak outlook by Macy's
<M.N> fueled worries the U.S. recession is worsening. [.N]
                                
 * The euro edged down to $1.2837 <EUR=> on Tuesday, having
gained on expectations the European Central Bank will keep
interest rates steady later this week and maintain the
currency's yield appeal. [USD/]
                                
 * Worries about the global economy persisted after data on
Monday showed U.S. consumption, which accounts for two-thirds
of the country's economy, fell for a sixth straight month in
December. A separate report pointed to continued weakness in
U.S. factory activity in January. See [ID:nN02375796].
                                
 DATA EVENTS
                                
 * The following data are expected in the next few days
<ECON>
                                
 - Eurozone produce prices for December
                                
 - US pending home sales for December
                                
 - US auto sales for January
                                
 PRICES    
  Metal         Last      Change  Pct chg  Day ago pct  MA 30
RSI   Spot gold     $901.70   -$1.45  -0.16%    +0.52%  
$860.10   59
 Spot silver    $12.33   -$0.04  -0.32%    +2.92%     $11.29 
69
 Spot plat     $966.50   -$3.50  -0.36%    -1.93%    $959.05 
58
 COMEX gold    $904.10  -$14.70  -1.60%    -2.54%    $864.41 
60
 TOCOM gold      2,601      -29  -1.10%    -1.18%      2,497 
66
 TOCOM plat      2,781      -31  -1.10%    -0.47%      2,696 
60
 Currencies                                              
                                
Euro/dlr       $1.284  -$0.030  -2.28%    -2.58%
 Dlr/yen         89.40    -0.98  -1.08%    +0.54%
 (Reporting by Lewa Pardomuan; Editing by Michael Urquhart)