* Gold rises, silver near highest since early 2008
* Safe-haven factor underpins precious complex
* Coming Up: U.S. Retail sales mm; 1230 GMT Aug
(Refreshes lead, adds comments, updates prices)
By Amanda Cooper
LONDON, Sept 14 (Reuters) - Gold rose on Tuesday to within
less than 1 percent of record highs after weak German data
knocked equities and the euro, prompting a flurry of safe-haven
buying, while silver and palladium touched multi-month highs.
Palladium, used mainly in autocatalysts, struck four-month
highs as a combination of fund buying and growing prospects for
industrial demand lifted prices.
Spot gold <XAU=> was at $1,253.85 an ounce by 1055 GMT, up
from $1,245.25 the day before. U.S. gold futures for December
delivery <GCZ0> were last up $8.40 an ounce at $1,255.50.
"All four precious metals are really keeping a very close
eye on the U.S. dollar right now and if the dollar doesn't
'shape up,' as such, this safe-haven buying will continue in the
precious metals," said Afshin Nabavi, head of trading at MKS
Finance.
A raft of economic data from both the euro zone and the
United States should offer further proof of the health of both
regions and will be particularly important in whetting investor
appetite for gold.
"People will be looking at that for some direction, but
overall, I would say given the economic situation in the U.S. as
well as ongoing geopolitical tensions we are pretty much on our
way towards breaking $1,265 and thereafter, up to $1,300,"
Nabavi said.
SENTIMENT
The euro slid against the dollar <EUR=> after an indicator
of German economic sentiment fell unexpectedly in September.
[]
The dollar extended losses on Tuesday to hit 15-year lows
against the Japanese yen and plumbed nine-month lows against the
Swiss franc, another key safe-haven asset, while euro zone
government bond yields also declined. [] []
Gold is on track for a near-14 percent rise this year,
fuelled primarily by investors seeking an alternative to
volatile currencies, equities and some sovereign bonds as
economic data has cast doubt on the global growth outlook.
Although the price is now less than 1 percent below late
June's record-highs, the market is now in the full throes of the
buying season in some of the world's biggest consumers.
Commerzbank analysts said outflows of metal from some of the
larger exchange traded funds, such as the SPDR Gold Trust <GLD>,
reflected a shift by investors towards higher risk assets.
"Given the substantial overhang of speculative long
positions, profit-taking is now possible by short-term oriented
financial investors if this sluggishness in prices continues.
The risk of position squaring increases for each day that gold
prices are not able to overcome the record high of $1,265,"
Commerzbank said in a daily report.
Offering gold support on Tuesday was a decline on the
equities markets, where major European indexes tilted into
negative territory. []
Across the rest of the precious metals complex, silver
traded at its highest in 2-1/2 years, helped by robust Chinese
industrial output and firm base metals, although the safe-haven
effect boosting gold was also a driving force. []
Spot silver <XAG=> was last at $20.27 an ounce, up from
$20.02 the day before and on course for its third consecutive
day of gains.
In the platinum group metals, palladium <XPD=> hit its
highest in four months, trading above $540 an ounce.
"We're getting better noises coming out of the euro zone
about projected growth and industry and obviously, palladium is
quite tightly linked to industry," one European trader said.
Palladium, which is predominantly used in the production of
auto catalysts, is on track for a 33 percent increase this year
and is one of the top performers of the commodities complex.
Palladium was last at $538.50, up from $524.95 on Monday,
while sister metal platinum <XPT=> was last quoted at $1,568.00
an ounce, up from $1,543.65 the day before.
(Additional reporting by Lewa Pardomuan in Singapore; editing
by Keiron Henderson)
