* Gold up on US housing data, economic recovery hopes
* New US silver-backed ETF could lift precious metals
* SPDR, ETF Securities gold ETFs see outflow on Wednesday
(Recasts, updates with closing prices, market activity,
changes dateline, pvs NEW YORK)
By Frank Tang
NEW YORK, July 23 (Reuters) - Gold futures rose to end
above $950 an ounce on Thursday as better-than-expected U.S.
housing data fueled economic optimism, and a new U.S.
silver-backed exchange-traded fund that could lift the precious
metals complex.
Wall Street rallied over 2 percent, and the Dow Jones
industrial average <> rose above 9,000 for the first time
since early January. Hopes of a quick economic recovery boosted
bullion's appeal as a hedge against long-term inflation.
Meanwhile, a new U.S.-listed silver ETF rekindled
expectations that a similar U.S. platinum ETF -- if it clears
regulatory hurdles -- could boost prices across the board in
the precious metals sector.
U.S. August futures <GCQ9> settled up $1.50 at $954.80 an
ounce on the COMEX division of the New York Mercantile
Exchange.
Spot gold <XAU=> was at $950.30 an ounce at 3:30 p.m. EDT
(1930 GMT), against $950.40 in its previous finish.
U.S. existing home sales notched their third monthly rise
in June and prices hit their highest level since October,
fueling hopes that the housing sector is finally on the mend
and will help propel a broader economic recovery.
The data prompted sharp gains in the global equities
market.
Oil also jumped nearly $2 to above $67 a barrel as traders
were cheered by firmer equities and the optimistic home sales
data. []
FUTURES BUYING OFFSETS GLD OUTFLOW
The market largely shrugged off a second daily outflow from
the world's largest gold ETF, New York's SPDR Gold Trust <GLD>,
and ETF Securities' smaller London-based gold fund, as interest
shifted to other products, analysts said. []
"It may be that outflows from things like the ETFs or the
retail base are being offset by more buying of OTC- or
futures-based (products)," said Calyon metals analyst Robin
Bhar.
Among other precious metals, silver <XAG=> was at $13.77 an
ounce against $13.68. In investment news, the ETFS Silver Trust
said it had issued shares backed by physical silver <SIVR> to
be traded on the New York Stock Exchange. []
"Silver can be extremely volatile and the more
participation we can get, the better. It's definitely a plus
for the structure of the market," said Bill O'Neill, managing
partner of New Jersey-based commodity firm LOGIC Advisors.
In April, London's ETF Securities also filed with the SEC
to launch platinum and palladium trusts in the United States.
Strong ETF demand for platinum and palladium could cut
supply for the auto makers and other industrial users. Auto
industry demand represented 60 percent of total platinum demand
in 2008.
Spot silver <XAG=> $13.75 an ounce, compared with its
previous close of $13.68.
Platinum <XPT=> was at $1,174.50 an ounce against $1,172,
while palladium <XPD=> was at $255.50 against $252.50.
(With additional reporting by Jan Harvey in London)
