SINGAPORE (Commodity Online) : Gold prices extended losses in Asian trade Thursday but ETF holdings rose to another record overnight.
Gold for immediate delivery was seen trading at $ 1221.71 an ounce at 11.00 a.m Singapore time while U.S. gold futures for August delivery was at $1,223.7 an ounce.
Analysts said the precious yellow metal extended losses after a strong U.S. home sales data ignited selling from speculators but added that an increase in ETF holdings suggested demand from investors remained firm.
Holdings in the SPDR Gold Trust, the biggest ETF backed by bullion, rose to a record 1268.23 tons yesterday. The US Mint sold 190,000 ounces of American Eagle gold bullion coins last month, the most since December
Gold hit a record of $1,248.95 in mid-May on fears the euro zone credit problems were spreading. Investors awaited the release of U.S. payrolls data on Friday.
The euro was steady around $1.2240 on Thursday, having bounced from a four-year low of $1.2110 on Tuesday, but the single currency was sensitive to any signs the euro zone sovereign debt crisis might spread to the banking system.
On Wednesday, gold futures for August delivery fell $4.30, or 0.4 per cent, to $1222.60 an ounce on the Comex in New York while spot gold ended at $1224.30 an ounce.
Silver futures for July delivery fell 23.6 cents, or 1.3 per cent, to $18.315 an ounce on the Comex.
Platinum futures for July delivery rose $1 to $1550.40 an ounce on the New York Mercantile Exchange. Palladium futures for September delivery declined $8.85, or 1.9 per cent, to $453.30 an ounce.