* SPDR Gold holdings rise 7.3% so far this year
* Silver slips from one-year high
(Updates prices)
By K. Sathya Narayanan
Aug 8 (Reuters) - Gold edged down on Thursday as equities
markets recovered, the U.S. dollar strengthened and traders
locked in profits after bullion surged past $1,500 to a more
than six-year high in the previous session.
Spot gold XAU= was down 0.2% at $1,498.45 per ounce as of
01:41 p.m. EDT (1741 GMT). U.S. gold futures GCcv1 settled
down 0.7% at $1,509.50 per ounce.
The metal has risen more than 16% so far this year, and
about $100 over the past week, in a run propelled by trade
tensions between Washington and Beijing, falling bond yields and
an increasingly dovish shift in policy by global central banks.
"We got a little bit of a relief rally going on in the
equities market here ... so, gold futures are pulling back a
little bit after an incredible run up," Phillip Streible, senior
commodities strategist at RJO Futures, said, adding the bull run
in gold is not over and the market is seeing a small correction.
Stock markets enjoyed a tentative recovery on Thursday, as
a steadier yuan restored some calm to markets following a stormy
few days that sent investors scrambling for safety. MKTS/GLOB
Yields on the 10-year U.S. Treasury note US10YT=RR
recovered somewhat, rising 6.2 basis points to 1.753%. US/
Overnight, yields on U.S. 30-year bonds US30YT=RR fell as
low as 2.123%, not far from a record low of 2.089% set in 2016.
The U.S. dollar .DXY was slightly up against a basket of
currencies, making greenback-denominated gold costlier for
investors holding other currencies. USD/
However, supporting bullion were "expectations that the U.S.
Federal Reserve is going to be more aggressive about rate cuts.
We have already seen four major central banks cut rates," RJO
Futures' Streible said.
On Thursday, the Philippine central bank cut its benchmark
lending rates, following similar moves by New Zealand, India and
Thailand, among others. Following the Fed's rate cut last week, interest rates
futures FEDWATCH suggest traders are betting the central bank
will cut rates three more times by the year-end to avert a
recession. On the technical front, spot gold may gain further to
$1,524, as it has cleared a resistance at $1,497 per ounce,
according to Reuters technical analyst Wang Tao. Reflecting investors appetite for bullion, holdings
HLDSPDRGT=XAU in the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust GLD , have risen 7.3% so
far this year. GOL/ETF
Silver XAG= dipped 0.9% to $16.95 per ounce, after hitting
a more than one-year high in the previous session.
Platinum XPT= was down 0.1% to $860.81, while palladium
XPD= rose 0.3% to $1,418.64 an ounce.
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