* Gold still eyes $1,437-technicals []
* ETF holdings continue to decline
* Coming Up: U.S. Producer Prices March; 1230 GMT
(Updates prices)
By Lewa Pardomuan
SINGAPORE, April 14 (Reuters) - Gold rose for a second day
on Thursday as the U.S. dollar held near a 16-month low against
a basket of currencies.
The precious metal held within $20 of the record high of
$1,476.21 an ounce struck at the start of the week, with
declines in exchange traded fund holdings suggesting investors
are keen to book profits.
A dip from all-time highs would spur purchases from
jewellers in Asia. Worries about inflation ensured steady demand
from China, which will release inflation data on Friday that
will offer clues on Beijing's next policy move.
Spot gold rose $3.74 to $1,458.35 an ounce by 0317
GMT.
"Gold could be supported by the weak dollar and the loose
monetary policy from the Federal Reserve," said Ong Yi Ling,
investment analyst at Phillip Futures in Singapore.
"For Asian buying, it may resurface upon dips in prices.
Chinese demand for gold is expected to remain strong. Amidst
rising inflation and a lack of investment alternatives, gold is
sought as a store of value."
The latest Reuters poll showed China's consumer inflation
may have accelerated to a 32-month-high of 5.2 percent in March,
higher than the government's inflation target of 4 percent for
2011. [].
China's Q1 GDP and March economic indicators are due at 0200
GMT on Friday. China is the world's second-largest gold consumer
after India.
The dollar held near the previous day's 16-month low against
a basket of currencies as mixed U.S. data did nothing to change
the view that the Fed would stick to its super-easy monetary
policy.
Gold's decade-long price rally could take the metal above
$1,600 an ounce by year-end, metals consultancy GFMS said in a
widely anticipated industry report on Wednesday, as investor
appetite for gold sharpens further. []
"There's steady buying from China. They don't seem to be
affected by the price movements. I think the government still
encourages people to buy gold instead of property," said a
dealer in Hong Kong, referring to Beijing's move to rein in the
red-hot property sector.
"Silver is in good demand from India. Maybe because the
price of gold is too high, and they turn to silver. Demand
started to appear two weeks ago."
India has shown steady interest in silver since early this
year, although it was not clear whether the metal was now used a
substitute for gold. India is in the midst of the wedding
season, with gold jewellery a common gift.
Spot silver rose 16 cents to $40.78 an ounce, not far
from a 31-year high at $41.93 struck on Monday.
"Prices are extremely high, currently, so perhaps it could
take a breather," said a dealer in Singapore. "But if gold goes
up, silver is likely rise as well. I continue to look for silver
taking its cue from gold."
IShares Silver Trust said its holdings slipped to
10,969.71 tonnes by April 13 from 11,212.53 tonnes on April 12,
and a record of 11,242.89 tonnes hit on April 8.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust , said its holdings extended losses and fell to
1,212.964 tonnes by April 13, their lowest in a week, from
1,216.299 tonnes on April 12.
U.S. gold futures for June rose $4.1 an ounce to
$1,459.7 an ounce.
The Singapore Mercantile Exchange will launch cash-settled
gold, silver and copper futures contracts on April 15, the
exchange said in a press release, which may carve out a new
market for speculators seeking arbitrage opportunities.
[]
In other markets, Japan's Nikkei average erased some of the
previous day's gains on Thursday in light volume, while U.S.
crude futures firmed after data showing U.S. gasoline stockpiles
plunged last week.
Precious metals prices 0317 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1458.35 3.74 +0.26 2.74
Spot Silver 40.78 0.16 +0.39 32.15
Spot Platinum 1777.50 8.35 +0.47 0.57
Spot Palladium 764.72 4.09 +0.54 -4.35
TOCOM Gold 3923.00 -26.00 -0.66 5.20 40213
TOCOM Platinum 4803.00 -32.00 -0.66 2.28 8642
TOCOM Silver 109.50 0.10 +0.09 35.19 1235
TOCOM Palladium 2061.00 -19.00 -0.91 -1.72 122
Euro/Dollar 1.4446
Dollar/Yen 83.47
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Michael Urquhart)
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