* Dollar drop lifts gold; China data stirs inflation worry
* SPDR gold ETF reports further outflow on Friday
* Platinum reaches 16-month high; ETFs eyed
(Recasts, updates comments, closing prices, market
activity, adds NEW YORK to dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Jan 11 (Reuters) - Gold prices rose more
than 1 percent on Monday, scaling a five-week high of $1,161.50
per ounce, on the back of dollar weakness as traders bet on
U.S. interest rates staying low in the immediate future.
Strong trade data in China, including booming demand for
oil and copper, boosted global risk appetite and helped boost
prices of commodities and gold. []
"Gold has been underperforming the rest of the commodities
complex. It is due to trade higher," said Jonathan Jossen,
COMEX gold floor trader.
Spot gold <XAU=> was at $1,151.80 an ounce at 2:44 p.m. EST
(1944 GMT), against $1,137.90 late in New York on Friday. U.S.
gold futures for February delivery <GCG0> on the COMEX division
of the NYMEX settled up $12.50 or 1.1 percent at $1,151.40 an
ounce.
The metal is building on gains made in the first trading
week of the new year, when prices climbed nearly 4 percent.
However, other precious metals and crude oil have been
outpacing gold.
"The technical situation for gold improved last week,"
Peter Fertig, a consultant at Quantitative Commodity Research,
said. "In addition of course, the U.S. dollar has given back
some of the gains it made at the end of last year.
Gold hit a record high $1,226.10 an ounce in December.
The dollar fell on Monday following disappointing U.S. jobs
data on Friday and after St. Louis Federal Reserve Bank
President James Bullard official said U.S. interest rates are
likely to stay low for some time. []
Other commodities rose on the back of the dollar's decline,
with industrial commodities boosted by stronger-than-expected
Chinese data. []
Growth in China's imports and exports last month beat
expectations, providing fresh evidence of economic recovery.
One analyst said the trade data suggested December industrial
output grew by more than 25 percent year-on-year.
"With the Chinese data out, people are expecting a faster
recovery in global growth, which could see some gold buying for
those who believe it is an inflation hedge," said Walter de
Wet, an analyst at Standard Bank.
SPDR GOLD OUTFLOW
In New York, the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust <GLD> reported a near
four-tonne outflow on Friday. []
Its holdings slipped just over 14 tonnes or 1 percent in
the first trading week of the new year.
Analysts said they expected growth of precious metals ETFs
to slow in 2010 compared with last year.
Among other precious metals, silver <XAG=> tracked gold
higher to $18.52 an ounce against $18.44. Platinum <XPT=> hit a
16-month high of $1,594.50 and was last at $1,592.50 against
$1,574.50, while palladium <XPD=> was at $430.50 against
$425.50.
Both platinum and palladium have benefited from the launch
of the first U.S.-based ETPs backed by the metals on Friday.
"We think platinum is poised to substantially benefit from
increased investment demand given its already favorable
fundamental outlook," Morgan Stanley said in a note.
Industry figures released on Monday showed China's auto
sales surged past the United States to reach record levels in
2009, underscoring China's importance to the global auto
industry as the world's biggest market. []
(Reporting by Frank Tang and Jan Harvey; Editing by Marguerita
Choy)
