TOKYO, July 2 (Reuters) - Gold was flat around $940 on
Thursday hanging on to the previous session's gains when bullion
shone after the dollar declined on news that China has asked to
debate proposals for a new global reserve currency.
Bullion attracted investors seeking a hedge both against a
falling U.S. currency, which dropped to its lowest in more than
three weeks against the euro on news about China, and long-term
inflation worries.
China is the biggest holder of U.S. Treasuries as well as
vast reserves of the U.S. currency. But analysts said it was
unlikely that the dollar's reserve currency status would be
challenged in the forseeable future.
FUNDAMENTALS
* Gold <XAU=> was at $941.05 per ounce at 0004 GMT, up 0.1
percent from the notional New York close of $939.95.
* U.S. gold futures for August delivery <GCQ9> were at
$941.70 per ounce, up 0.04 percent.
* The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings were at 1,120.55 tonnes as
of July 1, unchanged from the previous business day. []
MARKET NEWS
* The U.S. dollar dropped to its lowest in more than three
weeks against the euro on Wednesday, pressured by news China has
asked to debate proposals for a new global reserve currency at
next week's Group of Eight summit. []
* U.S. stocks rose on Wednesday, the start of the third
quarter, as reassuring manufacturing data from China, Europe and
the United States reinforced hopes that the world's economy is on
the road to recovery. []
DATA EVENTS
* The following data is expected on Thursday: <ECON>
- Italy budget deficit/GDP ratio (0800 GMT)
- BOE credit conditions survey, Q2 (0830 GMT)
- UK June construction PMI (0830 GMT)
- Euro zone May PPI (0900 GMT)
- Euro zone May unemployment (0900 GMT)
- ECB policy decision (1145 GMT)
- U.S. June employment report (1230 GMT)
- Weekly U.S. jobless claims (1230 GMT)
- U.S. ECRI future inflation gauge for June (1340 GMT)
- U.S. May factory orders (1400 GMT)
RELATED NEWS
> Gold rallies above $940, dollar drops on China news []
> Copper, gold rally as dollar falls on China news []
> China seeks reserve FX debate at G8-sources []
> US jobs data, hurdles amid factory glimmer []
> ECB's Weber-Growth won't be seen until mid-'10 []
PRICES
Precious metals prices at 2358
Metal Last Change Pct chg Day ago pct MA 30 RSI
Spot gold $940.70 $0.75 +0.08% +4.87% $860.10 54
Spot silver $13.77 $0.03 +0.22% +14.94% $11.29 39
Spot plat $1195.00 -$3.50 -0.29% +1.92% $1211.43 51
COMEX gold $941.50 $0.80 +0.09% +1.52% $949.02 53
TOCOM gold 2,922 20 +0.69% +0.14% 2,958 54
TOCOM plat 3,714 56 +1.53% +0.08% 3,789 51
Currencies
Euro/dlr $1.415 -$0.001 -0.04% +0.80%
Dlr/yen 96.50 -0.07 -0.07% +0.19%
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Miho Yoshikawa; Editing by Edwina Gibbs)
