* BoJ stands pat on stimulus; speculation mounts over Fed
* Largest gold ETF reports biggest inflow in a month
* Correlation between gold, US equities weakens
* Coming up: U.S. Federal Budget Wednesday
(Adds market details, graphic link, updates prices)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, June 11 Gold hit a near
three-week low on Tuesday, ending lower as a 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.
The precious metal was down as much as 1.4 percent after the
Bank of Japan said it held off on new measures, arguing that
bond markets had stabilized. Gold closed around 0.6 percent
"The BoJ has given the market the impression that there will
not be any more stimulus," said Carlos Perez-Santalla at
brokerage Marex Spectron.
Monday's comments by St. Louis Fed President James Bullard
on low U.S. inflation also weighed heavily on gold, whose prices
largely depend on inflation hopes, said Perez-Santalla.
Spot gold was down 0.6 percent at $1,378.51 an ounce
by 3:22 p.m. EDT (1922 GMT), having earlier hit $1,366.65, the
lowest since May 23.
U.S. Comex gold futures for August delivery settled
down $9 an ounce at $1,377, with trading volume about 35 percent
below its 30-day average, preliminary Reuters data showed.
Gold had already been hurt by talk the U.S. Federal Reserve
may be set to taper its monetary easing sooner than expected,
after Standard & Poor's lifted its U.S. sovereign credit outlook
on Monday and a U.S. payrolls report last week beat forecasts.
Analysts said that the notion that the Fed will taper its
bond-buying program will further pressure the price of gold,
whose rally in the last several years has been driven by
inflation worries due to central bank stimulus.
The BoJ news also the S&P 500 index around 0.5
percent lower, even though both equities and bullion have
trimmed earlier losses.
However, the link between gold - a traditional safe haven -
and U.S. equities has recently been erratic at best. The 25-day
correlation-log between spot gold and the S&P was at a -0.06 on
Tuesday, suggesting very weak inverse correlation.
PHYSICAL DEMAND DOWN, ETF SEES INFLOW
Dealers in Singapore said gold demand had eased after a jump
in April, which followed the biggest two-day fall in gold prices
in 30 years.
Meanwhile, fund selling in the gold market is showing signs
that it may bottom soon.
The world's largest gold-backed exchange-traded fund SPDR
Gold Trust 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 down 0.9
percent at $21.71 an ounce. Platinum slipped 1.4 percent
to $1,480.75 an ounce and palladium dropped 2.4 percent
at $749.31 an ounce.
3:04 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold AUG 1377.00 -9.00 -0.6 1364.50 1387.20 130,697
US Silver JUL 21.646 -0.279 -1.3 21.400 21.960 41,000
US Plat JUL 1479.90 -27.00 -1.8 1475.40 1511.10 11,599
US Pall SEP 752.50 -16.90 -2.2 750.00 772.15 3,364
Gold 1378.51 -7.89 -0.6 1367.63 1387.31
Silver 21.710 -0.200 -0.9 21.520 22.010
Platinum 1480.75 -21.75 -1.4 1479.75 1509.50
Palladium 749.31 -18.69 -2.4 752.52 768.75
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 142,214 220,939 181,683 22.59 0.39
US Silver 55,194 54,597 56,088 31.93 -2.40
US Platinum 13,048 11,716 11,679 22.58 0.39
US Palladium 3,463 6,384 5,571
(Editing by Bob Burgdorfer and Marguerita Choy)