* Gold hits highest since July 14
* Concern about global economy spurs safe-haven demand
* Coming Up: U.S July retail sales, June CPI; 1230 GMT
(Updates prices, adds German GDP data)
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.
News from Germany lowered risks associated with economic
growth, as Europe's largest economy posted its fastest
expansion for 23 years in the second quarter. []
The resulting surge in the the euro against the dollar
bolstered gold.
"Gold is stronger as the dollar weakened after the German
data," said Ronald Leung, director of Lee Cheong Gold Dealers
in Hong Kong. "The eurozone looks better, but we still have to
see the U.S. data, we need to see if the U.S. economy is
improving."
Fresh U.S. data that will 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.
"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 due out
later on Friday.
Spot gold <XAU=> stood at $1,215.90 an ounce by 0808 GMT,
up $4.70 on the day. The price earlier touched $1217.35, its
highest since July 14.
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, Leung 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 8 cents to $18.10 an ounce, catching up with
the recent rise in gold, analysts said.
Asian equities rose on Friday after the German GDP data but
looked set to end with heavy losses for the week. The MSCI
index for Asian stocks outside Japan <.MIAPJ0000PUS> rose 1.2
percent. The index was still down on the week by 2.6 percent,
its worse performance in six weeks. []
Precious metals prices at 0808 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1215.90 4.70 +0.39 10.97
Spot Silver 18.10 0.08 +0.44 7.55
Spot Platinum 1530.50 5.00 +0.33 4.33
Spot Palladium 470.75 3.75 +0.80 16.09
TOCOM Gold 3370.00 -8.00 -0.24 3.41
666
TOCOM Platinum 4262.00 -10.00 -0.23 -2.72
182
TOCOM Silver 50.80 -0.20 -0.39 -1.74
30
TOCOM Palladium 1304.00 -15.00 -1.14 11.93
2
Euro/Dollar 1.2855
Dollar/Yen 85.92
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
