* Upward trend intact despite recent upbeat econ data
* Holdings in gold and silver ETFs keep rising
* Coming up: U.S. weekly initial jobless claims; 1230 GMT
By Rujun Shen and Jacqueline Wong
SHANGHAI, Sept 2 (Reuters) - Gold prices were slightly
firmer on Thursday, and could stay on the rise as global
economic prospects remain shaky, while investors watch for more
labour data out of the United States.
The better-than-expected manufacturing data from the U.S.
on top of strong data out of China on Wednesday lifted equities
and commodities, but initial jobless claims due on Thursday and
payroll data on Friday are likely to show a still grim job
market in the U.S. and spur safe-haven demand in
gold.[]
"Today we'll be looking at initial jobless figures. There's
a possibility that gold may make a second attempt to reach the
$1,250 level," said Ong Yi Ling, an analyst at Philip Futures,
seeing a support level at $1,240.
Ong said recent upbeat economic figures were not strong
enough to dispel fears over a stale recovery.
"In the longer term, we're seeing that the economic
recovery still has several soft spots such as the labour
market. So I still expect gold to continue on the upward
trend."
Spot gold <XAU=> gained $2.5, or 0.2 percent, to $1,246 an
ounce by 0331 GMT, after having hit a two-month high of
$1,254.65 on Wednesday, which is just $10 below the all-time
high.
U.S. gold futures for December delivery <GCZ0> were little
changed at $1,248.
Traders said profit-taking at the $1,250 level drove gold
lower after its Wednesday peak, but there is an inflow of funds
into the gold market.
"After the long summer holiday season, we are seeing more
funds and investors getting back to the market," said a Hong
Kong-based trader who expects gold to hit a new high.
Holdings in both SPDR Gold Trust and iShares Silver Trust
both continued rising, showing growing interest from investors.
Holdings in the world's largest gold-backed,
exchange-traded fund, SPDR Gold Trust <GLD.P>, rose 1.52 tonnes
to 1,304.028 tonnes on September 1, from 1,302.508 tonnes on
August 31. The holdings had been rising for the past week.
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its holdings rose 53.27 tonnes
to 9,280.40 tonnes on September 1 from a day earlier.
The physical market is quiet with some selling from
Indonesia, and a mix of buying and selling from Thailand, a
Singapore-based dealer said.
"We saw some light buying after the market came off
yesterday's high. As long as prices stay in the $1,240 range,
they will not rush to sell. They are still bullish at this
point," said the dealer, adding that $1,260 would be the next
level to test.
Spot palladium <XPD=> edged down 0.1 percent to $515.5,
after having vaulted to $527.5 on Wednesday, its highest since
May 14.
Precious metals prices at 0331 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1246.00 2.50 +0.20 13.72
Spot Silver 19.32 0.00 +0.00 14.80
Spot Platinum 1532.00 4.00 +0.26 4.43
Spot Palladium 515.50 -0.50 -0.10 27.13
TOCOM Gold 3380.00 -21.00 -0.62 3.71
23733
TOCOM Platinum 4171.00 14.00 +0.34 -4.79
9838
TOCOM Silver 52.70 -0.40 -0.75 1.93
1092
TOCOM Palladium 1392.00 24.00 +1.75 19.48
470
Euro/Dollar 1.2785
Dollar/Yen 84.11
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
