* Run-up may have been overdone, but weak dlr underpins gold
* SPDR Gold holdings <XAUEXT-NYS-TT> unchanged since Fri
By Risa Maeda
TOKYO, Sept 10 (Reuters) - Gold inched up on Thursday after
failing to hold above $1,000 per ounce the previous day, with
investors focusing on the dollar as further weakness in the
greenback is likely to benefit the precious metal.
Gold had topped the psychologically key $1,000 for a second
straight session on Wednesday before retreating to a low of
$986.95.
But worries about the dollar slipping amid growing risk
appetite and diversification fears over the traditional reserve
currency continued to support the allure of gold as an
alternative asset, traders said.
"A decline in the dollar is the biggest key to understanding
gold's current strength," said Tetsu Emori, a fund manager at
Astmax Co, a top commodities trading adviser.
"These days, the trend in gold is largely set by financial
experts, not commodities experts. Their eyes are focused on the
dollar now," he said.
Spot gold <XAU=> traded at $994.35 per ounce as of 0536 GMT,
up 0.3 percent from New York's notional close of $991.15.
It had risen as high as $1,007.45 on Tuesday, its highest
since March 2008.
The dollar was little changed after hitting its lowest level
in nearly a year against a basket of major currencies <.DXY> on
Wednesday, when growing evidence of a global recovery spurred
investors to move into riskier currency trades. []
U.S. gold futures for December delivery <GCZ9> eased 0.1
percent to $996.10 per ounce.
On Wednesday the contract fell $2.70 to $997.10 on the COMEX
division of the New York Mercantile Exchange. December gold
futures had risen as high as $1,009.70, their highest since
February, on Tuesday.
Despite a rally in gold prices earlier this week, there were
no new investment inflows into the world's largest gold-backed
exchange-traded fund, the SPDR Gold Trust <GLD> this week. High
prices have already contained jewellery demand.
The holdings stood at 1,077.63 tonnes as of Sept. 9,
unchanged since Friday. []
"Looking back, the run-up was a bit overdone as there has
been little real money flowing into gold. The holdings of the ETF
didn't change at all," said Naomi Suzuki, a senior analyst at SC
Asset Management Co.
"Only open interest in U.S. gold futures is on the rise," she
said, referring to the number of open positions, which often
reflects the appetite of short-term investors.
Unless there is a bounce to a new record in the near future,
a fall towards $970 is possible as a rise in the volatility of
gold prices in recent weeks increased the likelihood of a halfway
retreat from a $50 jump so far this month, Suzuki said.
Gold stood slightly below $950 at the end of August.
In other metals, platinum <XPT=> was little changed after
gold-led gains helped send the white metal to a 12-month high of
$1,295 an ounce on Wednesday.
Platinum, mainly used to clean vehicle exhaust fumes and to
make jewellery, was at $1,278.50, versus New York's notional
close of $1,276.
Precious metals prices at 0538 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 994.20 3.05 +0.31 12.96
Spot Silver 16.40 0.13 +0.80 44.88
Spot Platinum 1281.00 5.00 +0.39 37.45
Spot Palladium 289.50 -1.00 -0.34 56.91
TOCOM Gold 2956.00 -31.00 -1.04 14.89 32377
TOCOM Platinum 3807.00 -58.00 -1.50 43.55 12407
TOCOM Silver 485.00 -8.00 -1.62 51.89 331
TOCOM Palladium 861.00 -18.00 -2.05 56.55 239
Euro/Dollar 1.4576
Dollar/Yen 92.07
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 Chikako Mogi)
