* Jitters over growth support safe-haven bid for gold
* Euro-priced gold reaches highest in 1-1/2 months
* Platinum-gold ratio slips to lowest since end June
(Updates prices, adds detail)
By Jan Harvey
LONDON, Aug 20 (Reuters) - Gold held near $1,230 an ounce on
Friday as concern over the outlook for the global economy
fuelled interest in the metal as a haven from risk, but gains in
the dollar kept the metal in a narrow range.
Spot gold <XAU=> was bid at $1,229.45 an ounce at 1120 GMT,
against $1,230.10 late in New York on Thursday. U.S. gold
futures for December delivery <GCZ0> eased $4.30 to $1,231.10.
The precious metal rose to a peak of $1,237.15 an ounce on
Thursday after weak U.S. jobless and manufacturing data knocked
the dollar and boosted interest in assets seen as lower risk. It
later pared those gains as the U.S. currency recovered.
But lingering concerns that U.S. growth will be sluggish is
continuing to support gold, analysts said.
"The glaring difference between the U.S. economy and the
rest of world and the fear of a probable second round of
economic recession has been serving as fodder to the bulls,"
said Pradeep Unni, senior analyst at Richcomm Global Services.
"Technically and from a momentum perspective the trend on
gold remains up, but this rising trend may succumb to profit
taking if the equity markets witness a sell-off."
"However, such dips are likely to be used as fresh buying
opportunities, given the increasing concern about the fate of
fiat currencies," he added.
The dollar rose nearly 1 percent against the euro <EUR=>,
which fell after European Central Bank Governing Council member
Axel Weber said the central bank should extend unlimited
liquidity to banks past the end of the year. []
Strength in the dollar typically weighs on gold, as it curbs
the metal's appeal as an alternative investment and makes dollar
priced assets more expensive for holders of other currencies.
Gold priced in euros <XAUEUR=R> benefited from the single
currency's slip, rising nearly 1 percent to a 1-1/2 month high
at 969.74 euros an ounce. It was later at 967.15 euros an ounce
against 959.59 euros late on Thursday.
On the wider markets, European stocks fell in early trade,
down for the third straight day and tracking U.S. and Asian
losses, after poor U.S. data brought fears of a double-dip
recession back to the forefront of investors' minds. []
ETF INFLOWS CONTINUE
Such fears also led to fresh inflows into the world's
largest gold exchange-traded fund, New York's SPDR Gold Trust
<GLD>. The trust's holdings rose nearly 4 tonnes to 1,299.468
tonnes on Thursday, their highest since July 27. []
On the physical markets, buying continued in India, the
biggest global consumer of the precious metal, ahead of a raft
of festivals, while a strong baht helped Thai consumers defy a
rise in gold prices, dealers said on Friday. []
Demand for physical gold, especially Asia, usually tails off
as prices rise.
Meanwhile, dealers in Singapore reported limited stocks
after aggressive purchases by Chinese consumers in early August
following Beijing's move to allow more banks to import and
export gold. <GOLD/ASIA1>
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For a graphic showing the relative price performance of gold
and platinum this year, click on:
http://graphics.thomsonreuters.com/gfx1/LWP_20102008165912.jpg
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Among other precious metals, silver <XAG=> slipped to $18.16
an ounce against $18.24, while platinum <XPT=> eased to
$1,510.60 an ounce from $1,520.50 and palladium <XPD=> to
$474.53 from $481.
The platinum group metals, which are chiefly used in
autocatalyst manufacturing, have failed to track gains in gold,
as industrial commodities suffer from concerns over growth.
The platinum-gold ratio -- or the number of ounces of gold
needed to buy an ounce of platinum -- fell to its lowest since
the end of June at 1.23 on Friday, as gold prices outperformed
platinum.
(Reporting by Jan Harvey; Editing by Alison Birrane)
