Gold Holds On To Gains, SPDR Holdings Rise

LONDON (Aug 12)   Gold rose for a fourth straight session Monday, hitting its highest level in two weeks as weak U.S. data offset traders' fears of moves by the Federal Reserve to taper its stimulus measures sooner than expected, while holdings in the biggest bullion-backed exchange-traded product expanded for the first time since June.

• As of 02:22 ET, gold gained 1.29 percent or 16.92 points to $ 1,330.04
• Silver for immediate delivery edged higher 3.22 percent or 0.66 points to $ 21.08

Gold rose Monday as investors continued to be wary over uncertainties related to the U.S. Federal Reserve plans to dilute its bullion-friendly stimulus program in the near future. A weak U.S. dollar also supported gold prices.

The U.S. Commerce Department said on Friday that wholesale inventories fell unexpectedly for a second straight month in June added to growth fears in the world's largest economy, prompting analysts to downgrade their second-quarter growth outlook.

As of (09:23 GMT+3), the dollar index traded around 81.24 after opening at 81.19; USDIX hit a high of 83.31 and a low of 81.10.

Gold was also supported by Friday's strong data from China that raised hopes of higher economic activity and increased demand for the precious metal from the second largest consumer in the world after India.

Data showed Chinese imports of raw materials and industrial commodities edge higher in July, adding to signs of stabilizing after a two-quarter downturn in the world's second largest gold consumer after India.

Demand for physical metal in china, jumped to 706.36 tons in the first half of the year, compared with 832.18 tons in 2012, China Gold Association said on Monday. China is expected to overtake India as the world`s biggest gold consumer in 2013.

• Spot platinum went up 0.57 percent to $ 1,507.65
• Spot palladium rose 0.59 percent to $ 745.30
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Bullion for immediate delivery rallied Monday after reports showed holdings in SPDR Gold Trust increased 0.2 percent to 911.13 tons on Friday - the first increase in two months