January 11, 2018 / 3:23 AM / a year ago

PRECIOUS-Gold prices rise as rally in shares loses steam

    * Spot gold looks neutral in $1,311-$1,329/oz range
    * SPDR Gold holdings fell 0.35 pct on Wednesday
    * Palladium sees worst 1-day fall in over a month on

 (Adds comment, updates prices)
    By Sethuraman N R
    Jan 11 (Reuters) - Gold prices edged up on Thursday, after
touching their highest since September in the previous session,
buoyed as a rally in equities appeared to falter.
    Spot gold        was up 0.1 percent at $1,317.93 an ounce by
0655 GMT. On Wednesday, it marked its lowest since Sept. 15 at
$1,326.56 an ounce.
    U.S. gold futures         were down 0.1 percent at $1,319.10
an ounce.
     "Rising oil prices and strong global growth suggest gold
will remain supported as investors look for inflation
protection," said Stephen Innes, APAC head of trading at Oanda.
     "Also, a highly-anticipated stock market correction is
providing support on dips which continues to support the bullish
gold narrative."
     Oil prices held near three-year highs on Thursday, buoyed
by a surprise drop in U.S. production and lower crude
     The New Year rally in Asian shares petered out on Thursday
due to concerns about rising U.S. protectionism.            
    "Gold could test $1,327 in the short term and above which
$1,362 will be opened ... Global equities are running at a high
level of exuberance, confidence and valuation ... which in short
stands for a bubble," said Amit Kumar Gupta, portfolio
management services head at Adroit Financial Services.
    "The belief 'this time it is different' is all set to get a
rude shock."
    Spot gold looks neutral in a range of $1,311-$1,329 per
ounce, and an escape could suggest a direction, according to
Reuters technical analyst Wang Tao.              
    "We feel that there will be sellers on rallies," said MKS
PAMP Group trader Alex Thorndike.
    "That being said, as Chinese seasonal buying picks up (ahead
of the Lunar New Year), the downside should remain supported
into February."
    Meanwhile, holdings in the SPDR Gold Trust      , the
world's largest gold-backed exchange-traded fund, fell 0.35
percent to 828.96 tonnes on Wednesday from Tuesday. Holdings
fell for a second straight day on Wednesday.          
    Among other precious metals, spot silver        rose 0.2
percent to $17.01 an ounce. Prices fell to the lowest in nearly
two weeks at $16.86 on Wednesday.
    Platinum        was mostly unchanged at $968.24 an ounce,
after touching its highest in nearly four months at $974 in the
last session.
    Palladium        climbed 0.1 percent to $1,084.40 an ounce,
after seeing its worst one-day fall in over a month on
Wednesday. Palladium, which rose to a record of $1,111.40 on
Tuesday, fell 1.5 percent the session before.

 (Reporting by Nallur Sethuraman in Bengaluru; Editing by
Christian Schmollinger and Joseph Radford)
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