* Gold hits highest since July 15
* Concern about global economy spurs safe-haven demand
* Coming Up: U.S July retail sales, June CPI; 1230 GMT
By Simon Webb
SINGAPORE, Aug 13 (Reuters) - Gold touched a four-week high
on Friday, extending gains from the previous day as investors
bought the precious metal and shied away from riskier assets on
concern about the health of the global economy.
Fresh U.S. data that would give further pointers to the
health of the world's largest economy could push gold even
higher, after unemployment data on Thursday spurred safe-haven
demand for gold and the dollar.
"We may see gold edging further up on follow-on strength
after yesterday's gains," said Ong Yi Ling, investment analyst
at Phillip Futures in Singapore.
"If U.S. retail sales comes in weaker than expected then
people will be getting worried about the U.S. economy."
U.S. consumer confidence and consumer prices are also due
out later on Friday.
Spot gold <XAU=> stood at $1215.10 an ounce by 0446 GMT, up
$3.90 on the day, after earlier touching $1215.85 an ounce, its
highest since July 15.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P>, said on Friday its holdings rose for the
second consecutive day. It held 1,286.699 tonnes by Aug. 12, up
from 1,285.787 tonnes on Aug. 11. []
Investor interest and the higher price had depressed
physical demand, a Hong Kong-based trader said.
"With the SPDR increasing and gold attractive as a safe
haven, physical demand has diminished," he said. Sellers would
be holding in the hope of further gains, he added.
Buyers came into the market when gold hit a near
three-month low in July but in the rally since, demand has
steadily fallen, he said.
Top gold consumer India has stayed on the sidelines as the
price has risen, although buying was expected to pick up during
the festive season that begins on Aug. 24 and extends into
November. [].
Gold typically gains when the dollar falls, but on Thursday
both rose. That could be a sign that investors are looking at
gold as an inflation hedge amid a run up in the prices of some
other commodities, said Jonathan Barratt, managing director of
Commodity Broking Services in Sydney.
"Given what is happening to foods and cereals, they are
perhaps perceiving there could be an inflationary spike,"
Barratt said.
Wheat prices are up nearly 70 percent from June lows and
hit a two-year high last week amid drought in Russia, crop
troubles in other Black Sea regions and flooding in Pakistan.
Silver rose 9 cents to $18.11 an ounce, catching up with
the recent rise in gold, analysts said.
Asian equities also edged higher on Friday but looked set
to end with heavy losses for the week. The MSCI index for Asian
stocks outside Japan <.MIAPJ0000PUS> rose 0.25 percent. The
index was still down on the week by 3.2 percent, its worse
performance in five weeks. []
Precious metals prices at 0437 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1215.00 3.80 +0.31 10.89
Spot Silver 18.12 0.10 +0.55 7.66
Spot Platinum 1522.75 -2.75 -0.18 3.80
Spot Palladium 468.75 1.75 +0.37 15.60
TOCOM Gold 3373.00 74.00 +2.24 3.50
34234
TOCOM Platinum 4248.00 87.00 +2.09 -3.04
11097
TOCOM Silver 51.00 1.20 +2.41 -1.35
230
TOCOM Palladium 1307.00 36.00 +2.83 12.19
143
Euro/Dollar 1.2856
Dollar/Yen 86.05
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
