(Repeats to additional subscribers)
* Rise in gold trust holdings lends some support
* Bullion may face pressure in Europe, U.S.
* Coming Up: U.S. personal income April; 1230 GMT
(Releads to show gold price rise, updates prices to afternoon)
By James Regan
SYDNEY, May 28 (Reuters) - Gold staged a modest comeback on
Friday on investment buying after running into competition for
capital from rallying equity markets and a stronger U.S.
dollar.
Gold also found modest fundamental support from a rise in
holdings of the world's largest gold-backed exchange-traded
fund, the SPDR Gold Trust <GLD>, to a new record, showing
global appetite for less risky investments continues on
lingering euro zone debt fears and tensions between South and
North Korea.
"External factors are still giving gold a lift, but the
markets today are more focused on stocks," a dealer in Sydney
said.
"We're not seeing real losses, more just sideways trading,"
the dealer said. "Gold holdings really didn't rise that much
compared to earlier in the week."
Spot gold <XAU=> was quoted at $1,214.15 an ounce at 0650
GMT versus New York's notional close of $1,211.10. Spot has
risen about 3 percent this week, hitting $1,218.35 on Thursday,
its highest level since May 19.
Benchmark U.S. gold futures for June delivery <GCM0> on the
COMEX division of the New York Mercantile Exchange was up $1.80
at $1,213.70 an ounce.
Rollovers out of the June contract into later-dated issues
dominated COMEX gold trade. First notice day for June futures
is May 28. Anyone still holding June contracts on Friday will
risk taking delivery.
Instead, most players were rolling gold futures positions
into August contracts, with some moving into December. COMEX
August gold <GCQ0> stood at $1,216.20 an ounce versus a
$1,214.40 close.
Data released by the world's largest gold-backed
exchange-traded fund, the SPDR Gold Trust, showed its holdings
reached a record 1,267.930 tonnes as of May 27 versus 1,267.626
tonnes a day earlier. That is a fraction of the 30 tonne-plus
gain recorded between May 25-26.
Japan's Nikkei rose 1.28 percent <.T.> and Korean
stocks<> gained 0.95 percent after Wall Street firmed on
Thursday on news that China still regards Europe as a key
investment market for its foreign-exchange reserves.
The statement by China's central bank also had a wider
soothing effect on jittery financial markets across Southeast
Asia, Australia <> and New Zealand <>.
Stronger stock markets during European and then U.S. time
slots later on Friday could steal more thunder from gold, which
had closed higher over the last past three consecutive days on
stepped up safe-haven investments.
U.S. personal spending data for April <USGPC=ECI> later on
Friday is expected to show a rise of 0.3 percent for April,
down only slightly from 0.6 percent rise in March, which may
also dent gold's safe-haven appeal.
The euro edged lower on Friday, giving back some of the
hefty gains made the previous day, while the dollar index
<.DXY> gained 0.2 percent against a basket of currencies.
Precious metals prices
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1214.75 3.65 +0.30 10.87
Spot Silver 18.50 0.05 +0.27 9.92
Spot Platinum 1555.00 -6.00 -0.38 6.00
Spot Palladium 463.00 1.00 +0.22 14.18
TOCOM Gold 3565.00 25.00 +0.71 9.39 43108
TOCOM Platinum 4572.00 75.00 +1.67 4.26
17425
TOCOM Silver 55.10 1.50 +2.80 6.58
631
TOCOM Palladium 1363.00 65.00 +5.01 17.00
952
Euro/Dollar 1.2350
Dollar/Yen 91.27 TOCOM prices in yen per gram, except
TOCOM silver which is priced in yen per 10 grams. Spot prices
in $ per ounce.
(Editing by Himani Sarkar)
