* Dollar resumes loss, dollar index down 0.7 pct <.DXY>
* India gold imports up from August, down from last year
* SPDR holdings unchanged
(Updates prices, adds analyst comment)
By Rebekah Curtis
LONDON, Sept 30 (Reuters) - Gold rallied above $1,000 an
ounce on Wednesday, as dollar weakness helped the metal stay on
track for its best quarterly performance since early 2008.
Spot gold <XAU=> stood at $1,002.40 per troy ounce by 1129
GMT, compared with $990.70 quoted late in New York on Tuesday,
as the dollar fell against a basket of major currencies.
U.S. COMEX gold futures for December <GCZ9> were up $8.90 at
$1,003.3.
A weaker dollar makes gold and other commodities priced in
the U.S. currency cheaper for non-U.S. investors.
"Largely it's been dollar weakness, it's going to push
precious metals higher," Standard Bank analyst Walter De Wet
said of gold's recent strength.
"We think gold could reach $1,100 in the next four months,"
he added. "There's a seasonal component in gold demand in the
fourth quarter which should support it."
Bullion has risen some 8 percent in the past three months
while the dollar has shed 4.5 percent over the same period.
The metal is on track to close its best quarterly
performance since the first quarter of last year. Gold prices
have gained 14 percent so far this year, also bolstered by
technical momentum and concerns about potential inflation.
"The dollar's going to go down further and that's going to
help gold," David Thurtell, an analyst at Citi, said.
"It can hold over $1,000 for a while," he added.
Speculative positioning is a concern, however, with record
long positions on the U.S. COMEX gold futures market still
leaving prices vulnerable after sharp losses last week.
INDIA IMPORTS
India's gold imports in September were provisionally around
35-40 tonnes, up from August but down by more than a quarter
from 54 tonnes a year ago, the head of the Bombay Bullion
Association said. []
Citi's Thurtell said higher gold prices were hurting demand
from India, the world's biggest consumer of the precious metal.
But the physical market is gathering some support in India
as jewellery demand picks up in the run-up to the festive
period, analysts said.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings stood at 1,094.107
tonnes as of Sept. 29, unchanged from the previous business day.
<XAUEXT-NYS-TT>
VTB capital said in a note to clients that it expected gold
prices to stay fairly close to current levels, with support at
$984 -- roughly near the low hit late last week.
"We expect the end of the week to see more volatility and
more action, with U.S. and Eurozone PMI data on release."
Among other precious metals silver <XAG=> traded at $16.40
from $16.11, platinum <XPT=> was at $1,289 from $1,267 and
palladium <XPD=> traded at $289.5 from $285.
(Editing by Sue Thomas)
