* Gold firmer, SDPR holdings hit record
* For the technical outlook for gold see: []
* Coming Up: U.S. weekly jobless claims data at 1230 GMT
(Recasts, previous SINGAPORE)
By Rebekah Curtis
LONDON, May 27 (Reuters) - Gold rose slightly on Thursday as
worries about Europe's debt woes attracted buying from
investors, while holdings in the world's largest bullion-backed
exchange-traded fund jumped to another record.
Spot gold <XAU=> was at $1,211.25 an ounce by 0913 GMT, up
from $1,209.90 late in New York's on Wednesday.
Gold hit a record high of $1,248.95 in mid-May as investors
favoured bullion's safe heaven appeal and ditched the euro on
fears euro zone austerity measures could hurt, rather than help,
a recovery.
Gains in gold were capped on Thursday, however, as the euro
rose versus the dollar after Chinese officials denied a report
that the country may be distancing itself from euro zone debt
holdings.
But bullion remained underpinned by the currency's recent
weakness and by concerns that the euro zone crisis might deepen
and damage the region's banking sector. [] <.DXY>
"It's the safe haven appeal," Robin Bhar, an analyst at
Credit Agricole said of gold's rise. "It's the same fears of
sovereign debt, of double dip recession, of China slowing," he
added. "It's all those fears driving gold higher."
He added the euro would likely retest recent four-year lows
versus the dollar.
Bullion dropped to a two-week low last week as investors
sold the metal to cover losses in equities but analysts said the
subsequent recovery showed that sentiment was still bullish.
For a graphic showing the gold technical outlook, see:
http://graphics.thomsonreuters.com/gfx/WT_20102705090254.jpg
ETF BOOST
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings totalled 1,267.626
tonnes as of May 26, from 1,267.322 tonnes a day earlier,
setting a fresh record high. []
Also supporting prices, the World Gold Council said global
gold demand would likely rebound this year as investors buy the
metal as a safe store of value away from volatile financial
markets and as consumers get used to higher prices.
[]
U.S. gold futures for June delivery <GCM0> added $2.9 to
$1,216.3 an ounce.
Platinum <XPT=> was at $1,541.40 an ounce against $1,518.50,
while palladium <XPD=> was at $451.18 against $436.50. Spot
silver <XAG=> was bid at $18.29 an ounce against $18.01.
But some analysts remained cautious on the complex.
"We have seen a small rebound across the whole precious
complex, yet we would be very careful here as risk sentiment is
still far from ideal," said Andrey Kryuchenkov, analyst at VTB
Capital.
On the economic agenda investors will look out for U.S.
weekly jobless claims data due at 1230 GMT, and U.S. preliminary
GDP data, also at 1230 GMT.
(Editing by James Jukwey)
