RTRS:PRECIOUS-Gold holds below $1,590 after upbeat U.S. data
* Dollar near 7-month highs on strong U.S. retail sales
* Speculators waiting in the wings to sell platinum - trader
* Coming Up; U.S. PPI inflation at 1230 GMT
(Updates prices)
By Melanie Burton
SINGAPORE, March 14 (Reuters) - Gold steadied below $1,590
an ounce on Thursday after slipping in the previous session when
upbeat U.S. retail sales strengthened the outlook for the
world's top economy and dampened bullion's safe-haven appeal.
Indications that the global economy, led by recent positive
data from the United States, is on a better footing this year
has driven investors away from gold, with spot prices down 5
percent this year.
Spot gold was little changed at $1,587.06 an ounce by
0723 GMT. U.S. gold was off 0.1 percent at $1,586.30.
"We already initiated a sell gold recommendation last
December," said Henry Liu, head of commodity research at Mirae
Asset Securities in Hong Kong.
"As long as the U.S economy is coming back we do not think
gold prices can rise."
The U.S. dollar hovered near seven-month highs against a
basket of currencies after bullish U.S. retail sales data fanned
hopes the economy can cope with the tax hikes and spending cuts
that kicked in this year.
U.S. retail sales expanded at their fastest pace in five
months in February, the latest sign of momentum for an economy
facing headwinds from higher taxes and pricier gasoline.
But output at factories in the euro zone fell more than
expected at the start of 2013 and production in France and
Germany slipped in the latest sign the bloc is struggling to
emerge from recession.
Reflecting a lack of conviction in the gold market, holdings
of the largest gold-backed exchange-traded-fund, New York's SPDR
Gold Trust were little changed on Tuesday from Monday,
while that of the largest silver-backed ETF, New York's iShares
Silver Trust SLV rose half a percent.
"We think gold lacks both technical momentum and investment
interest to recover significantly from current levels," Credit
Suisse said in a client note.
PLATINUM A SELL
Investors are also ready to sell into any platinum price
strength because the yen has been weakening against the dollar,
a trader in Singapore said.
A stronger dollar makes commodities priced in the greenback
more expensive for holders of other currencies. The yen weakness
in particular, driven by the Bank of Japan's shift towards
radical easing to end nearly two decades of deflation, is
encouraging further sales, the trader said.
"This selling on TOCOM triggered stops in the U.S. futures
and while we have seen a small bounce, there are plenty of
sellers waiting for a pop higher," he added.
Spot platinum dropped 0.4 percent to $1,582.74 per
ounce.
