* Gold seen consolidating before heading higher
* SPDR Gold holdings dip 0.1 pct []
By Miho Yoshikawa
TOKYO, Oct 22 (Reuters) - Spot gold was steady around $1,060
an ounce on Thursday, not far from the record high marked last
week as it drew investors hedging against a weaker dollar and
concerned over inflation stemming from strong oil prices.
Gold <XAU=> was at $1,060.25 per ounce at 0252 GMT, up 0.2
percent from the notional close in New York.
U.S. gold futures for December delivery <GCZ9> were at
$1,061.3 per ounce, down 0.3 percent.
Last week, spot gold soared to an all-time high of $1,070.40,
while New York gold futures hit a record peak of $1,072 as the
dollar's weakness spurred buying of gold.
A weaker dollar benefits gold as it makes it cheaper for
holders of other currencies. It also enhances the metal's allure
as a hedge against a depreciation in the U.S. currency.
"From a technical perspective, it looks like the precious
metal is pausing and consolidating after reaching the highs of
$1,070 an ounce," said Adrian Koh, an analyst at Phillip Futures.
"And if the general scenario doesn't change, as in a
weakening dollar, then we could be in for a test of the record
highs again when gold does break higher," he said.
The dollar was under pressure on Thursday, hovering near a
14-month low against a basket of currencies. []
U.S. crude futures <CLc1> remained above $81 a barrel on
Thursday, extending the previous session's gains on U.S.
government data which showed a surprisingly large drawdown in
gasoline inventories. []
Buying by long-term investors has been slow, however.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings stood at 1,108.094
tonnes as of Oct. 21. []
That marks a decline of 0.1 percent from two weeks ago when
it rose to 1,109.314 tonnes on Oct. 7.
India's gold sales for the Dhanteras festival, its biggest
gold-buying day, could have risen by up to 30 percent from a
benchmark, as consumers expecting the near-record prices to rise
further bought freely. []
Buying by India, a top consumer, has been slow until now, and
has been seen as an illustration of weak physical demand.
Analysts said the rise in speculative net long positions to a
record last week also makes gold vulnerable to a correction.
In industry news, Australia's Newcrest Mining Ltd <NCM.AX>
reported a 5 percent decline in September quarter gold production
on Thursday after mining lower gold-bearing ores at some mines.
[]
ETF Securities USA filed a preliminary prospectus with the
Securities and Exchange Commission on its proposed first-ever
U.S. platinum exchange-traded fund (ETF). []
PRICES
Precious metals prices at 0249 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1060.10 1.75 +0.17 20.45
Spot Silver 17.63 -0.03 -0.17 55.74
Spot Platinum 1362.50 3.50 +0.26 46.19
Spot Palladium 336.50 4.00 +1.20 82.38
TOCOM Gold 3112.00 23.00 +0.74 20.95 32403
TOCOM Platinum 4005.00 53.00 +1.34 51.02 8635
TOCOM Silver 517.00 7.30 +1.43 61.92 237
TOCOM Palladium 989.00 6.00 +0.61 79.82 184
Euro/Dollar 1.5003
Dollar/Yen 90.95
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Watson)
