PRECIOUS-Gold rebounds from 3-week lows as equities slide
* SPDR Gold Trust holding steady, seen bullish * Physical gold buying subdued in India, China * Volatility could continue until FOMC meeting next week * Coming up: U.S. retail sales, import/export data Thursday (Adds market details, updates prices) By Frank Tang and Jan Harvey NEW YORK/LONDON, June 12 (Reuters) - Gold rose on Wednesday as sharp losses in U.S. equities and a drop in the U.S. dollar prompted the metal to rebound from the previous session's three-week low. After earlier rangebound trade with no major U.S. economic data, bullion extended gains in late morning trade as the S&P 500 index fell almost 1 percent on persistent worries over how soon central banks will begin to scale back supportive measures. Better investment demand, reflected by the absence of fresh outflow from the world's largest gold-backed exchange-traded fund SPDR Gold Trust, also boosted bullion investor sentiment. "It's a sign that the worst of the money outflows in the gold market is over. We are still not out of the woods but at least it shows that the gloom-and-doom forecast of $1,000 gold is unrealistic for now," said Bill O'Neill, partner at commodities investment firm LOGIC Advisors. Spot gold was up 0.6 percent at $1,387.36 an ounce by 2:46 p.m. EDT (1846 GMT). Bullion hit a three-week low at $1,366.65 on Tuesday after lack of new economic stimulus from the Bank of Japan fueled worries that other central banks may also withdraw their support, denting bullion's inflation-hedge appeal. U.S. Comex gold futures for August delivery settled up $15 an ounce to $1,392. Turnover was low with trading volume at under 120,000 lots, sharply below its 30-day average of 220,000, preliminary Reuters data showed. Gold also benefited as the dollar index slipped 0.2 percent, as the greenback tumbled against the yen. Analysts said volatility in financial markets may continue until the Fed's meeting next week and an accompanying statement from Fed Chairman Ben Bernanke on Wednesday. "Markets will however wait for cues from the Fed next week," Pradeep Unni, a senior analyst at Richcomm Global Services, said. "Lower imports from India after the duty hike will also be negative for gold." BUYING SOFT IN INDIA, CHINA Demand was subdued in India, the world's largest gold consumer, which last week moved to cut gold imports by lifting import duties to 8 percent. Gold imports have been a major contributor to India's wide current account deficit. A lack of physical trading in China, whose markets are shut due to the Dragon Boat Festival holiday, further undermined gold, dealers said. Bullion held by SPDR Gold Trust was unchanged after the ETF reported its largest inflow in over a month on Monday, of 2.7 tonnes. Its holdings remained near four-year lows, however, down 340 tonnes this year. Among other precious metals, silver was up 0.6 percent at $21.73 an ounce. Platinum dropped 0.4 percent to $1,474.24 an ounce, while palladium rose 0.5 percent to $753.22 an ounce. 2:46 PM EDT LAST/ NET PCT LOW HIGH CURRENT SETTLE CHNG CHNG VOL US Gold AUG 1392.00 15.00 1.1 1372.20 1394.00 105,383 US Silver JUL 21.796 0.150 0.7 21.455 21.950 33,469 US Plat JUL 1482.30 2.40 0.2 1468.00 1490.70 8,705 US Pall SEP 757.05 4.55 0.6 750.25 759.30 2,023 Gold 1387.36 8.37 0.6 1374.73 1394.26 Silver 21.730 0.120 0.6 21.600 22.010 Platinum 1474.24 -5.26 -0.4 1470.00 1489.00 Palladium 753.22 3.72 0.5 752.50 756.00 TOTAL MARKET VOLUME 30-D ATM VOLATILITY CURRENT 30D AVG 250D AVG CURRENT CHG US Gold 112,629 219,941 181,510 21.46 -1.09 US Silver 46,024 53,807 56,109 33.31 1.38 US Platinum 10,237 11,833 11,679 22.96 0.38 US Palladium 2,117 6,342 5,571 (Editing by Jason Neely and Nick Zieminski)
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