* Gold still eyes bearish $1,437-technicals []
* China CPI, GDP data on Friday in focus
* 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 fell to a 16-month low against a
basket of currencies on expectations the Federal Reserve will
lag global central banks in raising interest rates.
Bullion 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 physical purchases from
jewellers in Asia. Worries about inflation have also ensured
steady demand from China, which will release consumer prices and
other key data such as GDP on Friday that will offer clues on
Beijing's next monetary policy move.
Hong Kong's Phoenix TV on Thursday said annual inflation
accelerated to between 5.3 and 5.4 percent in March, without
citing a source for the information. []
Economists polled by Reuters had expected annual inflation
in March to run at 32-month high of 5.2 percent, up from
February's 4.9 percent.[]
Spot gold rose $4.95 to $1,459.56 an ounce by 0523
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.
"Asian buying 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."
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 14 cents to $40.76 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 $6.1 an ounce to
$1,461.7 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 Brent
crude fell to trade below $123 a barrel on concern about the
impact of high prices on demand.
Precious metals prices 0523 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1459.56 4.95 +0.34 2.83
Spot Silver 40.76 0.14 +0.34 32.08
Spot Platinum 1779.24 10.09 +0.57 0.66
Spot Palladium 765.97 5.34 +0.70 -4.19
TOCOM Gold 3936.00 -13.00 -0.33 5.55 45561
TOCOM Platinum 4818.00 -17.00 -0.35 2.60 9871
TOCOM Silver 109.70 0.30 +0.27 35.43 1420
TOCOM Palladium 2068.00 -12.00 -0.58 -1.38 128
Euro/Dollar 1.4486
Dollar/Yen 83.66
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Ed Lane)
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