* Gold sustains gains, palladium softer
* China's GDP growth accelerates
* Coming Up: U.S. Initial job claims; 1230 GMT
(Updates prices)
By Lewa Pardomuan
SINGAPORE, April 15 (Reuters) - Gold firmed on Thurday on
bargain hunting driven by early gains in the euro, with strong
China economic growth underpinning sentiment, while palladium
slipped from a two year high hit the previous day.
The strong China growth raised the prospect of steady
industrial metals demand in the world's second-largest gold
consumer.
Spot gold <XAU=> was at $1,155.30 an ounce, up $1.40 an
ounce from New York's notional close on Wednesday. Gold rallied
to $1,168.70 on Monday, its strongest since Dec. 4, but was
struggling to revisit the level.
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Bullion is about 6 percent below a record high above $1,226
struck in early December.
"I believe China is contemplating measures to tighten up
the economy, whether in the form of revaluing the yuan or
increasing interest rates. But the impact on commodities will
be short lived," said a dealer in Singapore.
"Fundamental demand is there because the economy is
booming. Investment demand for gold should be well supported."
China's annual economic growth quickened in the first
quarter to 11.9 percent, the fastest pace since 2007,
benefiting from a low base of comparison last year and the
momentum imparted by a massive bank-financed stimulus. Consumer
prices rose 2.4 percent in the year to March, less than
expected. []
The euro <EUR=> was hardly changed at $1.3645 and was off
its intraday high, while commodity currencies like the
Australian dollar held gains on a pick up in risk appetite and
growing confidence that China may soon move to revalue its
currency. []
Any move by China to revalue its currency is seen to be
positive for Asian currencies and could weigh on the U.S.
dollar in the short term. A weak dollar makes dollar-priced
gold cheaper for holders of other currencies.
Investors looking to preserve wealth from a global economic
crisis last year bought more gold than jewellery consumers for
the first time since gold was rallying back in 1980, metals
consultancy GFMS said. []
COMEX June <GCM0> fell $1.2 an ounce to $1,158.4 an ounce.
"I think sentiment for gold is a bit mixed right now. It
needs to consolidate around these levels," said Ronald Leung,
director of Lee Cheong Gold Dealers in Hong Kong.
"I think some investors are tightening their gold holdings
and may be buying stocks," said Leung, adding that platinum
group metals also saw profit taking from recent highs.
Palladium <XPD=> fell $5.25 to $540.75 an ounce, having
risen as high as $548.50 an ounce on Wednesday on growing
demand by exchange traded funds and hopes of improving demand
from makers of autocatalysts.
Japan's Nikkei average rose 0.7 percent on Thursday after
stronger-than-expected results from companies such as JPMorgan
Chase & Co <JPM.N> boosted Wall Street. []
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at a record of
1,141.041 tonnes as of April 14, unchanged from the previous
business day. []
Precious metals prices at 0513 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1155.30 1.40 +0.12 5.44
Spot Silver 18.40 0.01 +0.05 9.33
Spot Platinum 1723.00 -3.00 -0.17 17.45
Spot Palladium 540.75 -5.25 -0.96 33.35
TOCOM Gold 3477.00 -5.00 -0.14 6.69
32201
TOCOM Platinum 5158.00 -6.00 -0.12 17.74
11670
TOCOM Silver 55.70 0.20 +0.36 7.74
416
TOCOM Palladium 1617.00 4.00 +0.25 38.80
1123
Euro/Dollar 1.3639
Dollar/Yen 93.33
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
