* Gold looks set to post monthly gain of about 4 pct
* More data needed to confirm U.S. out of recession -trader
* SPDR Gold holdings flat, iShares Silver rises 1.5 pct
By Chikako Mogi
TOKYO, Oct 30 (Reuters) - Gold prices rose slightly toward
$1,050 per ounce on Friday as the dollar remained pressured,
buffing up bullion's allure as an alternative to the falling U.S.
currency.
Gold is now down about 2 percent from record highs above
$1,070 hit on Oct. 14, but looks set to end October with a rise
of about 4 percent on the month, and is down 0.6 percent on the
week.
Investors began taking profits on gold when the dollar took a
break from its fall after hitting 14-month lows against the euro
this week. But the prospect of U.S. interest rates staying very
low into next year kept alive selling pressure on the dollar.
Gold gained 2 percent on Thursday after data showing the U.S.
economy returning to growth hit the dollar and drove Wall Street
into rally mode.
"We need to see more data to confirm that the U.S. economy is
really coming out of recession. The market is likely to stay in
recent ranges until next week's U.S. nonfarm payrolls data," said
Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.
"People are buying at the dip, and some demand was confirmed
when the market underwent a correction, but it was not in large
volume. If the market went down to $1,000, we might see more
demand," he said.
Leung said he expected gold prices to face near-term
resistance around $1,050, with prices staying in the
$1,025-$1,070 range set since gold hit record highs.
Spot gold <XAU=> was up 0.3 percent at $1,047.70 per ounce by
0614 GMT, compared to New York's notional close of $1,044.95.
It hit a three-week low of $1,025.75 on Thursday.
U.S. gold futures for December delivery <GCZ9> edged up to
$1,048.30 per ounce, compared to $1,047.10 an ounce on the COMEX
division of NYMEX.
Investors found silver more appealing after prices had hit
three-week lows this week.
The world's largest silver-backed exchange-traded fund, the
iShares Silver Trust <SLV>, said its bullion holdings stood at
8,744 tonnes by Thursday, up 131.43 tonnes or 1.5 percent from
the previous day. []
It is the first rise in about two weeks and the biggest
percentage rise in about four months.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,104.434 tonnes as
of Oct. 29, unchanged from the previous business day, after
falling for three days in a row. []
Other precious metals rose sharply on Thursday following
gold's rise, with silver <XAG=> climbing more than 3 percent,
platinum <XPT=> nearly 2 percent and palladium <XPD=> nearly 3
percent.
On Friday, spot silver <XAG=> was at $16.65 per ounce, off a
three-week low of $16.08 marked on Thursday. Platinum <XPT=> was
at $1,326.50 per ounce after touching a three-week low of
$1,297.00 on Wednesday.
Precious metals prices at 0623 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1047.30 2.35 +0.22 18.99
Spot Silver 16.64 0.01 +0.06 47.00
Spot Platinum 1327.00 -10.50 -0.79 42.38
Spot Palladium 328.50 3.00 +0.92 78.05
TOCOM Gold 3074.00 63.00 +2.09 19.47 65109
TOCOM Platinum 3887.00 57.00 +1.49 46.57 18082
TOCOM Silver 487.70 14.60 +3.09 52.74 869
TOCOM Palladium 962.00 45.00 +4.91 74.91 646
Euro/Dollar 1.4825
Dollar/Yen 90.90
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Risa Maeda; Editing by Michael Watson)
