* Gold eases but remains in sight of seven-month peak
* SPDR Gold Trust holdings up 0.5 pct, marks new record
* Bullion seen headed towards $1,000
By Miho Yoshikawa
TOKYO, Feb 20 (Reuters) - Gold was a touch softer on
Friday
continued to trade near a seven-month high over $985 marked
this week as it consolidated gains before tackling new peaks.
The precious metal fell a touch on Thursday on
profit-taking sparked by worries that its recent rally had been
overdone, but the bleak economic outlook is expected to keep
safe-haven buying intact.
Spot gold was trading at $972.75 an ounce by 0252
GMT, down about 0.1 percent from New York's notional close on
Thursday. This compares with it's all-time high of $1,030.80
marked in March.
Gold touched $985.95 an ounce on Thursday, marking its
highest level since July 15, and was likely to try to
consolidate around $960 before heading higher, dealers said.
"I would say (the market) should be able to consolidate a
little bit, it should come down a little bit, maybe around the
region of $960," said Beh Hsia Wah, a dealer at United Overseas
Bank in Singapore.
"Everybody is looking for $1,000," she said.
A Hong Kong dealer said gold was showing its strength in
its traditional role as an inflation hedge in the current
economic climate as more money was printed to fight the
recession.
"People read the newspaper ... and people are flocking to
gold for the time being," he said.
There was little buying for jewelry demand.
"We're only seeing investment buying, that's all," he said.
Gold's popularity as an investment was also evident in the
rise in gold exchange-traded funds.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust GLD, said holdings hit a record 1,028.98
tonnes on Thursday, up 4.89 tonnes or 0.5 percent from the
previous day. [GOL/SPDR]
Investment in silver ETFs has also been strong, with
holdings of the world's largest, the iShares Silver Trust
SLV.P, jumping nearly 3 percent to a record 7,873.75 tonnes
on Wednesday.
Its holdings have risen more than 1,000 tonnes, or 16
percent, since the start of the year. [ID:nLJ806511]
In supply news, the world's second-largest gold producer,
Newmont Mining (NEM.N: Quote, Profile, Research), sees equity gold sales at 5.2 million
to 5.5 million ounces in 2009, and reported adjusted earnings
per share of 26 cents in the fourth quarter. [ID:nN19398975]
If a bleakening outlook in other markets, from equities to
foreign exchange, is any indication, gold is unlikely to lose
its shine for investors soon.
The latest deteriorating economic signs included Thursday's
close of the U.S. Dow industrials index at its lowest in more
than six years and a fall in crude oil futures below $39 a
barrel. [O/R] [.N]
The yen edged up slightly on Friday, but stayed in sight of
a six-week low against the dollar and a one-month trough
against the euro. [USD/]
Precious metals prices at 025 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 972.60 -0.95 -0.10 10.50
Spot Silver 14.05 0.04 +0.29 24.12
Spot Platinum 1062.00 -4.50 -0.42 13.95
Spot Palladium 214.00 0.50 +0.23 15.99
TOCOM Gold 2953.00 20.00 +0.68 14.77 18578
TOCOM Platinum 3223.00 -6.00 -0.19 21.53 4332
TOCOM Silver 421.20 -1.80 -0.43 31.91 196
TOCOM Palladium 661.00 10.00 +1.54 20.18 898
Euro/Dollar 1.2623
Dollar/Yen 94.12
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; Editing by Clarence
Fernandez)
