RPT-PRECIOUS-Gold firms near 1-½ month high; ETF holdings up

(Repeats to more subscribers)

* Gold up, holds near 1-½ month high

* May retrace to $1,211/oz - technicals [ID:nSGE67H01Q]

* Coming Up: Mortgage index Weekly; 1100 GMT

(Updates prices)

By Lewa Pardomuan

SINGAPORE, Aug 18 (Reuters) - Gold gained on Wednesday,
within sight of a 1-½ month high hit the previous day, with
sentiment underpinned by a rise in ETF holdings and persistent
worries about the health of the global economy.

Investors shrugged off gains in the Nikkei, which could be
short-lived because of the yen's strength against the dollar,
while most economic data from the United States pointed to a
slowdown in the recovery.

Gold XAU= added $2.15 an ounce to $1,225.05 an ounce by
0528 GMT, having hit $1,228.45 on Tuesday, the highest since
early July. It was about 3 percent below a record struck in
June.

High prices attracted selling of gold scrap from holders
in
Indonesia and Hong Kong, but volume was small.

"I am also looking at gold to be supported above the $1,220
level. It would be underpinned by strong investment demand as
we see from the rise in holdings of the SPDR Gold Trust," said
Ong Yi Ling, an investment analyst at Phillip Futures in
Singapore. "I think it really demonstrates a strong
investment interest in gold that will continue, especially if
we see people worried about the economic recovery. It really
depends on the kind of economic data that is being printed."

For a 24-hour gold technical outlook, see:
here
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust (GLD.P: Quote), said its holdings rose to 1,294.604 tonnes
by Aug. 17 from 1,286.699 tonnes on Aug. 12. The holdings hit a
record at 1,320.436 tonnes on June 29. [GOL/SPDR]

U.S. gold futures for December delivery GCZ0 fell $1.5 to
$1,226.8 - off a 1-½ month high seen on Tuesday.

Fears about a double-dip recession after a flurry of weak
economic data and the Fed's downward reassessment of its U.S.
outlook lifted gold's appeal as an alternative investment.

In the latest economic data, producer prices increased in
July for the first time in four months, helping to allay
concerns about deflation, but housing starts rose at a weaker
rate than expected and permits fell to their lowest point in
more than a year. [ID:nN16267366] [ID:nN17122965]

The Nikkei edged up 0.4 percent on Wednesday as the Wall
Street gained after two U.S. retailers reported
better-than-expected earnings, but strong yen capped gains.
[.T] [.N]

The yen rose, with traders citing yen-buying by Japanese
players, while the Canadian dollar held gains made on news of a
huge takeover bid by global miner BHP Billiton for Canada's
Potash Corp. The euro dipped 0.4 percent to $1.2838 EUR=.
[USD/]

"The ETF offers good support for the market for the time
being. I would say there's still light buying from India.
There's a bit of selling of scrap after the price hits a new
high but investors still want to buy some gold," said a dealer
in Hong Kong.

Gold demand in top consumer India is picking up for the
busy festival season, starting with Raksha Bandhan on Aug. 24,
and extending till Dhanteras in November, the single biggest
gold-buying day. A firmer rupee is also expected to offset
gains in global gold prices. [GOL/IN]
Precious metals prices at 0528 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1225.05 2.15 +0.18 11.81
Spot Silver 18.50 0.03 +0.16 9.92
Spot Platinum 1541.45 2.95 +0.19 5.07
Spot Palladium 494.25 0.75 +0.15 21.89
TOCOM Gold 3376.00 9.00 +0.27 3.59
17124
TOCOM Platinum 4276.00 23.00 +0.54 -2.40
8261
TOCOM Silver 51.70 0.30 +0.58 0.00
341
TOCOM Palladium 1363.00 34.00 +2.56 17.00
229
Euro/Dollar 1.2844
Dollar/Yen 85.41
TOCOM prices in yen per gram. Spot prices in $ per ounce.