PRECIOUS-Gold rebounds after 1 pct drop, equity gains weigh

                                
 SINGAPORE, June 11 (Reuters) - Gold rebounded on short
covering on Friday after falling around 1 percent in the
previous trading session, but gains in equities weighed on
sentiment.
                                
 FUNDAMENTALS
                                
 * Spot gold <XAU=> was at $1,219.35 an ounce by 0024 GMT,
up $3.55 from New York's notional close on Thursday, when it
slipped after a rally in Wall Street curbed safe-haven demand.
Gold struck a record at $1,251.20 earlier this week on fears
the euro zone's sovereign debt crisis may spread.
                                
 * U.S. gold futures for August delivery <GCQ0> hardly
changed at $1,221.7 an ounce.
                                
 * The world's largest gold-backed exchange-traded fund,
SPDR Gold Trust <GLD.P>, said its holdings rose to a record
high at 1,306.137 tonnes. [GOL/SPDR]
                                
 * The gold market is too small, illiquid and volatile to be
suitable for asset allocation, China's State Administration of
Foreign Exchange (SAFE), said in its annual report published on
Thursday. [ID:nBJI002326]
                                
 MARKET NEWS
                                
* Japan's benchmark Nikkei average <.N225> rose 2.01 percent
to 9,734.33 on Friday after U.S. stocks posted their best day
in the last nine on Thursday in response to signs of health in
the euro debt market. [.T] [.N]
                                
 * The euro rose on Thursday for a third straight day as
strong demand for Spanish bonds eased concern about the
country's ability to finance its debt and a spike in Chinese
exports boosted confidence on global growth. [USD/]
                                
 * U.S. crude futures stood steady on Friday after closing
at a four-week high above $75 a barrel a day earlier on the
back of a Wall Street rally and a rosier oil demand forecast by
International Energy Agency.
                                
 DATA EVENTS
                                
 The following data is expected on Friday <ECON>:
  * China Industrial output yy May          (0200 GMT)
  * China Retail Sales yy May               (0200 GMT)
  * China Consumer Price Index yy May       (0200 GMT)
  * China Producer Price Index yy May       (0200 GMT)
  * China Urban investment (ytd) yy May     (0200 GMT)
  * U.S. Retail sales May                   (1230 GMT)
  * U.S. Business inventories Apr           (1400 GMT)
  * U.S. ECRI index Weekly                  (1430 GMT)
                                
 RELATED NEWS > Tough Wall Street bill seen as lawmakers
convene [ID:nN10196529] > Geithner signals US patience waning
on yuan policy[ID:nN10236564] > Japan to set budget spending
cap for 3 yrs-Nikkei [ID:nTFD006434] > Australia plans changes
to mining tax - report   [ID:nSGE6590L6] > US jobless claims
fall slightly, trade gap widens [ID:n09208728] > A U.S.
double-dip recession seen as unlikely     [ID:nN10243462] > SEC
approves new trading curbs for large US stocks[ID:nN10593125] >
ECB keeps rates at 1 pct, sees uneven growth    
[ID:nLDE6590CW] > US budget deficit on an easing path          
                                
[ID:nN10534968] > Banks say reform plans could cut growth by
3 pct [ID:nLDE6591EZ]
 Precious metals prices at 0024 GMT
 Metal             Last    Change  Pct chg  YTD pct chg
Turnover
 Spot Gold        1219.35    3.55   +0.29     11.29
 Spot Silver        18.26    0.07   +0.38      8.50
 Spot Platinum    1540.50    6.50   +0.42      5.01
 Spot Palladium    455.25    4.75   +1.05     12.27
 TOCOM Gold       3600.00   -3.00   -0.08     10.46       
20706
 TOCOM Platinum   4569.00   64.00   +1.42      4.29        
4963
 TOCOM Silver       54.40    0.70   +1.30      5.22         
101
 TOCOM Palladium  1349.00   22.00   +1.66     15.79          
56
 Euro/Dollar       1.2127
 Dollar/Yen         91.55
 TOCOM prices in yen per gram. Spot prices in $ per ounce.
 (Reporting by Lewa Pardomuan; Editing by Ed Lane)