* S&P revises U.S. credit outlook to stable from negative
* Fed's Bullard: low inflation means Fed can stay aggressive
* India may consider more measures to curb gold import
* Coming up: U.S. wholesale data Tuesday
(Adds market details, updates prices)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, June 10 Gold edged up in light
trade Monday after dropping the most in a month in the previous
session, as markets digested a decision by Standard & Poor's to
revise the sovereign credit outlook for the United States to
stable from negative.
Bullion's reaction to the announcement by the credit rating
agency was largely muted. In August 2011, S&P downgraded the
sovereign U.S. credit rating from top-rated AAA to AA-plus,
heightening economic uncertainty that helped lift gold to a
record high $1,920 a month later.
On Monday, analysts said the news could further weigh on
gold's safe-haven appeal against a backdrop of an already
improving U.S. economy and the absence of any inflation threat.
"We continue to see rotation into the stock market as fear
continues to leave the marketplace," said Frank McGhee, head
precious metals trader at Integrated Brokerage Services LLC.
"I don't even think a 10-15 percent retracement in the stock
market is enough to shake people out and back into the metals
for the long term," McGhee said.
Spot gold was up 0.2 percent at $1,386.14 an ounce by
2:57 p.m. EDT (1857 GMT), off a near two-week low of $1,375.99
hit earlier in the session.
U.S. Comex gold futures for August delivery settled
up $3 an ounce at $1,386, with trading volume about 50 percent
below its 30-day average, preliminary Reuters data showed.
Gold fell around 2 percent on Friday, its biggest one-day
drop in over three weeks, after resilient U.S. jobs data
prompted some investors to prepare for the Federal Reserve to
reduce its monetary stimulus by the end of the year.
Markets now mulled over comments by a senior Fed official,
St. Louis Fed President James Bullard, who said on Monday that
low inflation means the central bank can stick to aggressive
bond buying if warranted.
Investors seemed marginally less wary of gold, however.
Outflows from gold-backed exchange-traded funds slowed, with the
world's largest gold ETF, the SPDR Gold Trust, reporting
an outflow of six tonnes last week, compared with an average 24
tonnes a week over the previous two months.
INDIAN GOLD DEMAND MUTED
Gold demand in India, the world's largest bullion consumer,
was weak, traders said, hurt by seasonal slackness and efforts
by the government to curb bullion imports.
India's government raised the import duty on gold to 8
percent last week, after a ban on consignment imports by banks,
state-run and premier trading houses. One finance ministry
official said on Monday it could consider more fiscal measures
to cut gold imports if they do not fall to the desired level.
Among other precious metals, silver was up 1.6
percent at $21.98 an ounce. Platinum inched up 0.4
percent to $1,504.12 an ounce and palladium rose 1.5
percent to $767 an ounce.
2:57 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold AUG 1386.00 3.00 0.2 1375.10 1388.50 102,428
US Silver JUL 21.925 0.182 0.8 21.330 22.030 35,911
US Plat JUL 1506.90 4.30 0.3 1487.30 1509.30 8,046
US Pall SEP 769.40 8.20 1.1 753.70 771.60 2,928
Gold 1386.14 2.25 0.2 1376.88 1388.56
Silver 21.980 0.340 1.6 21.440 22.080
Platinum 1504.12 5.62 0.4 1491.00 1507.00
Palladium 767.00 11.50 1.5 756.00 769.00
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 107,342 222,778 181,313 22.48 -0.18
US Silver 42,971 56,491 55,798 34.33 3.26
US Platinum 9,558 11,704 11,675 22.19 -0.06
US Palladium 3,010 6,434 5,570
(Editing by Steve Orlofsky and Marguerita Choy)