PRECIOUS-Gold lifts from lows on haven demand

                                
 * Gold hits new highs in euro, sterling, rupee and others
  * SPDR Gold, iShares Silver ETFs hit fresh records
* Impala Platinum cuts output targets for 2009 and beyond
                                
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 By Jan Harvey
                                
 LONDON, Feb 19 (Reuters) - Gold lifted from lows on Thursday
as safe-haven demand boosted interest in gold and bullion-backed
exchange-traded funds, but remained depressed by profit taking
amid fears the metal's recent sharp rally had been overdone.
                                
 The precious metal is still expected to push towards highs
above $1,000 an ounce, dealers said, as fears over the outlook
for the financial system boosts investment.
                                
 Spot gold <XAU=> was at $977.00/979.00 an ounce at 1536 GMT
from $984.50 late in New York on Wednesday. Earlier it touched a
peak of $985.95 an ounce, its strongest since July 15.
                                
 U.S. gold futures for April delivery <GCJ9> on the COMEX
division of the New York Mercantile Exchange were up 60 cents at
$978.30 an ounce.
                                
 Landesbank Baden-Wurttemberg analyst Thorsten Proettel said
heavy investment in gold-backed ETFs such as the SPDR Gold Trust
had left the market looking overbought.
                                
 "(Investors) are buying because of uncertainty over the
economic situation," he said. "I can imagine that will cool down
a little over the next week. We have an overbought market."
                                
 He said gold is still likely to break through the $1,000 an
ounce mark, however, before profit-taking and sluggish jewellery
sales begin to weigh on prices.
                                
 Gold has climbed nearly 5 percent this week to its Thursday
peak, as fears over the outlook for the financial system and
rising inflation in the longer term prompted investors to buy it
as a safe store of value.
                                
 Bullion reached new record highs when priced in a range of
currencies on Thursday, including sterling, the euro, the
Australian and Canadian dollar and the Indian rupee.
                                
 However, profit taking and a recovery of other assets such
as equities and the euro in early trade pushed the precious
metal down as much as 1.7 percent.
                                
 "If we see signs the stock markets are recovering, people
will come back to stocks," Deutsche Bank trader Michael
Blumenroth said. "If money comes back to the stock market, it
will come out of gold."
                                
 U.S. equities were higher on Thursday, although they cut
gains after a monthly measure of regional factory activity
showed a sharp contraction. [ID:nN19502713]
                                
 
                                
 INFLOWS INTO EFTS
                                
 Investment demand for apparently safer assets is still
supporting bullion. Holdings of the world's largest gold-backed
ETF, the SPDR Gold Trust <GLD>, rose 1.5 percent to a record
1,024.09 tonnes as of Wednesday. [ID:nT213601]
                                
 "Over the past month, inflows into the ETF have more than
equalled mine supply...and are close to matching our estimates
of total demand for gold," UBS strategist John Reade said in a
research note.
                                
  The dollar dipped versus the euro as a rise in share prices
reflected easing risk aversion. While a weaker dollar typically
benefits gold, both assets are for the moment responding to risk
aversion, as they are seen as key risk havens. [ID:nN19500421]
                                
 Gold's other main external driver, crude oil, climbed more
than 4 percent but also exerted little influence over the metal.
                                
 In supply news, the world's second-largest gold producer
Newmont Mining <NEM.N> sees equity gold sales at 5.2-5.5 million
ounces in 2009, and reported adjusted earnings per share of 26
cents in the fourth quarter. [ID:nN19398975]
                                
 Among other precious metals, spot silver <XAG=> dipped in
line with gold to $13.97/14.03 an ounce from $14.32. Earlier it
peaked at $14.38, its strongest level since mid-August.
                                
 Investment in silver ETFs has also been strong. Holdings of
the world's largest, the iShares Silver Trust <SLV> jumped more
than 214 tonnes on Wednesday. [ID:nLJ806511]
                                
 Spot platinum <XPT=> slipped to $1,067/1,077 an ounce from
$1,097.50, while spot palladium <XPD=> slid to $213.50/217.50 an
ounce from $217.
                                
 The chief executive of the world's number two platinum
producer Impala Platinum Holdings <IMPJ.J> said it was cutting
its production forecasts due to falling demand. [ID:nLJ180574]
                                
 Both platinum and palladium have dipped in the last year as
demand from carmakers, major users of the metals, has slumped.
 (Editing by James Jukwey)