* Gold firmer, SDPR holdings hit record
* For the technical outlook for gold see: []
* Coming Up: U.S. weekly jobless claims data at 1230 GMT
(Updates prices, adds comment)
By Rebekah Curtis
LONDON, May 27 (Reuters) - Gold rose for a fourth day in a
row 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 $1,214.15 an ounce by 1117 GMT, up
from $1,209.90 late in New York's on Wednesday and has risen by
more than 3 percent so far this week.
"Overall, I remain positive towards the market in the near
future," Afshin Nabavi, MKS Finance's head of trading and
physical sales, said of gold.
"It looks like there is nothing else at the moment to invest
in. The financial markets are a bit nervous and jittery."
Investors have taken refuge in bullion in recent weeks,
favouring its safe heaven appeal and ditching the euro on fears
the euro zone debt crisis was deepening. Gold hit a record high
of $1,248.95 in mid-May.
Gains in gold were capped on Thursday, however, as the euro
rose versus the dollar after Chinese officials denied a report
the country may be distancing itself from euro zone debt
holdings.
But bullion remained underpinned by expectations of further
euro weakness as investors fretted the euro zone crisis might
damage the region's banking sector. [] <.DXY>
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 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> rose $0.7 to
$1,214.1 an ounce.
"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.
Platinum <XPT=> was at $1,543 an ounce against $1,518.50,
while palladium <XPD=> was at $450.75 against $436.50. Spot
silver <XAG=> was bid at $18.34 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 Amanda Cooper)
