* Gold firmer, SDPR holdings hit record
* For the technical outlook for gold see: []
* COMING UP: Japan May CPI data, due at 2330 GMT []
(Updates prices, adds comment)
By Rebekah Curtis
LONDON, May 27 (Reuters) - Gold rose to one-week highs on
Thursday, supported by its safe-haven appeal in a euro zone debt
crisis but with gains capped as equities and the euro bounced
from recent lows.
Spot gold <XAU=> was at $1,214.95 an ounce by 1444 GMT, up
from $1,209.90 late in New York's on Wednesday. The precious
metal has risen by about 3 percent so far this week and hit a
session high of $1,218.35, its highest since May 19.
Palladium <XPD=> jumped nearly 6 percent to a one-week high
of $462 an ounce, as analysts said recent losses in the metal
had been overdone.
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 could deepen. Gold hit a record high
of $1,248.95 in mid-May.
"It looks quite solid, the rally in gold," said Deutsche
Bank's head of commodity research Michael Lewis. "We still feel
market disruption risk is something we're going to see quite
frequently now over the next year," he added.
"There are a number of factors we would highlight as risks
which could be quite beneficial for gold."
Putting a leash on gold's gains, however, shares rallied and
the euro rose 0.7 percent versus the dollar after China and
Kuwait rejected reports they will reduce euro zone investments.
[] <.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
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Underpinning gold was data on Thursday showing the U.S.
economy grew at a slower pace than previously estimated in the
first quarter, and weak U.S. jobs data. []
[]
ETF BOOST
Also supportive to gold, 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. []
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> edged slightly
higher to $1,214 an ounce.
Palladium traded at $460.50 against $436.50. Platinum <XPT=>
was at $1,540.50 an ounce against $1,518.50 and spot silver
<XAG=> was bid at $18.45 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.
(Editing by James Jukwey)
