* Month-end buying, economic concerns boost gold
* Gold on track for biggest monthly gain since April
* Coming up: U.S. private sector jobs; Sept 1 at 1215 GMT
(Releads, adds comment, refreshes prices)
By Amanda Cooper
LONDON, Aug 31 (Reuters) - Gold recouped losses on Tuesday
and rallied for a third day, hitting two-month highs after more
data suggested the U.S. economy is running out of steam and a
flurry of end-of-month buying lifted prices.
Gold is on track to post its biggest monthly percentage gain
since April in August, after a raft of soft U.S. economic data
lifted its appeal as a haven from risk.
Spot gold <XAU=> was bid at $1,244.15 an ounce at 1430 GMT,
against $1,236.66 late in New York on Monday, having hit a new
session peak of $1,247.50, its highest since late June. U.S.
gold futures for December delivery <GCZ0> rose $7.0 an ounce to
$1,246.00.
"People are fearful enough of what else is going on in the
economy and that is sufficient to justify what is going on in
gold," said Peter Hillyard, head of metal sales, Europe at ANZ.
"It's a bit of a continuation of what is going on in other
markets with month-end and I think $1,300 is on the
cards...certainly for September," he said.
Data on Tuesday showed a slowing in business activity in
August in New York City, the home of Wall Street, while consumer
confidence rose in August and prices for U.S. single-family
homes staged a larger rise than expected in June and rose in the
second quarter.
DOUBLE-DIP?
Yet the fear of the U.S. economy sliding back into recession
boosted the yen -- which benefits at times of economic stress --
and put global equities and industrial commodities under
pressure. []
So, the chances are high for gold to rise above its all-time
high of $1,264.90 an ounce later this year, analysts said.
"We are lacking momentum at the moment," said Credit Suisse
analyst Tom Kendall. "Looking through to September and beyond,
we expect to see new highs in dollar terms. But short term, we
have to consolidate."
He said a revival in physical demand for gold and flows into
exchange-traded funds, central bank interest, persistently low
bond yields and a more neutral positioning in Comex futures were
all constructive for the precious metal.
Among other commodities, oil prices eased below $75.00 a
barrel, hurt by expectations that crude inventories would rise,
reflecting lower demand from the United States. Base metals also
slipped. [] []
Financial markets are awaiting key U.S. payrolls data for
August due on Friday. U.S. data releases are being closely eyed
for further signs of weakness in the economic recovery, with any
fresh risk aversion seen potentially pressuring higher-risk
assets and lifting gold.
Among other precious metals, silver <XAG=> followed gold's
lead, rising by more than 1 percent to around $19.20 an ounce,
up from $18.96 late on Monday. Silver has gained nearly 7
percent in August, its best monthly performance since a 13.1
percent gain in November 1999.
Platinum <XPT=> was at $1,524.00 an ounce against $1,525.20,
while palladium <XPD=> was at $494.00 against $493.93.
The auto-catalyst metals have come under pressure from
concerns weakness in economic growth will weigh on demand for
raw materials. However, they are sensitive to supply threats,
especially platinum.
But analysts say the metals, particularly platinum, may get
support from the threat of supply disruptions. South Africa's
National Mineworkers Union said on Tuesday workers might strike
at Northam Platinum <NHMJ.J> for higher wages. []
"Should the current strike of public workers in South Africa
spread to the mining companies, this could give prices fresh
tailwind," said Commerzbank in a note.
(Additional reporting by Jan Harvey; editing by Keiron
Henderson)
