RTRS:PRECIOUS-Gold inches down as growth concerns weigh
* Investors cautious on mixed U.S. data
* Spot gold could fall to $1,596/oz - technicals
* Coming up: U.S. retail sales redbook, weekly; 1355 GMT
(Updates prices)
By Rujun Shen
SINGAPORE, Dec 28 (Reuters) - Gold edged lower on
Wednesday, tracking falls in industrial metals and equities, as
concerns about global economic growth weighed on market
sentiment amid thin year-end trading volumes.
Investors were cautious as the latest data out of the United
States sent mixed signals. Improving labour market conditions
lifted consumer confidence to an eight-month high in December,
but persistently weak house prices remain an obstacle to faster
economic growth.
Industrial metals, along with equities, eased in thin
holiday trade.
"There have been a couple of positive signs on the U.S.
economy, but it's hard to be hung up on them too much," said a
Singapore-based trader.
"The economic prospects are so dire that it seems to have
taken people's appetite away from commodities ,
especially in industrial metals, late in this calendar
year."
Spot gold edged down 0.3 percent to $1,587.70 an
ounce by 0724 GMT, on course for a third consecutive session of
losses. U.S. gold inched down 0.4 percent to $1,589.80.
Technical analysis suggested that spot gold could fall to
$1,596 during the day, Reuters market analyst Wang Tao said.
Although gold traditionally has a safe-haven appeal, the
euro zone debt crisis is threatening the global economy, causing
a liquidity shortage in markets and forcing investors to abandon
their gold positions to cover losses elsewhere.
Investors are watching Italy's final bond auctions of the
year this week. Italian government bond yields edged higher on
Tuesday and were expected to rise further with investors growing
nervous that thin liquidity may complicate Rome's plans to sell
8.5 billion euros worth of debt on Thursday.
Asia's physical market remained lacklustre in the final week
of the year, as market participants have largely moved to the
sidelines, with premiums steady in Singapore and Hong Kong,
dealers said.
"There is not too much activity as prices circle around
$1,600 level," said Ronald Leung, a physical dealer at Lee
Cheong Gold Dealers in Hong Kong, but added that buying from
China had been steady.
Chinese authorities said they have banned gold exchanges
outside of the two in Shanghai, after small gold trading
platforms sprouted all over the country during a gold rush among
Chinese investors.
China should buy gold to further diversify and protect its
foreign exchange reserves, the head of research at China's
central bank said.
Precious metals prices 0724 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1587.70 -4.59 -0.29 11.85
Spot Silver 28.68 0.02 +0.07 -7.06
Spot Platinum 1425.24 -2.59 -0.18 -19.36
Spot Palladium 660.50 2.01 +0.31 -17.39
TOCOM Gold 3973.00 -24.00 -0.60 6.54 37394
TOCOM Platinum 3600.00 15.00 +0.42 -23.34 9805
TOCOM Silver 71.00 -1.50 -2.07 -12.35 635
TOCOM Palladium 1656.00 18.00 +1.10 -21.03 286
COMEX GOLD FEB2 1589.80 -5.70 -0.36 11.85 9145
COMEX SILVER MAR2 28.68 -0.06 -0.23 -7.32 1486
Euro/Dollar 1.3064
Dollar/Yen 77.78
TOCOM prices in yen per gram. Spot prices in $ per ounce.
COMEX gold and silver contracts show the most active months
