PRECIOUS-Gold extends gains as dollar stays weak

TOKYO, Aug 20 (Reuters) - Gold edged up on Thursday,
extending gains into a third day as continued weakness in the
dollar fueled investors' tolerance for riskier assets such as
stocks and commodities.

Doubts about a nascent global economic recovery had recently
prompted investors to sell riskier assets and pile into
safe-haven bets including the dollar and Treasury bonds.

FUNDAMENTALS

* Gold XAU= stood at $944.60 per ounce at 0000 GMT, up 0.3
percent from New York's notional close of $941.55.

* U.S. gold futures for December delivery GCZ9 were $946.70
per ounce, up 0.2 percent. On Wednesday, the contract settled up
$5.60 at $944.80 on the COMEX division of the New York Mercantile
Exchange.

* The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust (GLD), said its holdings stood at 1,065.49 tonnes
as of Aug. 19, unchanged since Aug. 11. [GOL/SPDR]

* ETF Securities said the amount of metal it holds to back
its palladium exchange-traded commodity rose nearly 5,000 ounces
or 1.4 percent to a record high on Aug. 18. [ID:nLJ577473]

* The World Gold Council, an industry-sponsored trade group,
said on Wednesday that gold demand fell 9 percent in the second
quarter on persistent weakness in jewellery buying, as the
recession dampened consumer sentiment and high prices put off
buyers. [ID:nLJ559281]

MARKET NEWS

* The dollar fell against the euro EUR= and a basket of
currencies on Wednesday as a rebound on Wall Street reduced
safe-haven demand for the U.S. currency. [USD/]

* U.S. stocks rose, shaking off a slide in China's equity
market, as investors responded favourably to a surprising drop in
crude oil stockpiles that might suggest an improving demand
outlook. [.N]

* Japan's Nikkei share average .N225 rose 0.5 percent in
early trade on Thursday. [.T]

* U.S. crude CLc1 surged more than 4 percent on Wednesday
after U.S. government data showed a steep drop in crude imports
and inventories in top consumer the United States. [O/R]

DATA EVENTS

* The following data is expected on Thursday: ECON

- Bank of Japan policy board member Mizuno speech (0130 GMT)

- Swiss trade data for July (0615 GMT)

- UK public finances for July (0830 GMT)

- UK retail sales for July (0830 GMT)

- Weekly U..S. jobless claims (1230 GMT)

- U.S. leading indicators for July (1400 GMT)

- Philadelphia Fed August business activity index (1400 GMT)

RELATED NEWS
>Gold rises on dollar drop despite weak jewellery [GOL/]
>Oil surges, gains recoil as CFTC curbs index funds [COM/WRAP]
>SAfrica union says to strike next week at Implats [ID:nLJ237652]
>TAKE A LOOK-Gold demand dips on low jewellery [ID:nLJ559281]
>India gold traders continue to trickle in [ID:nBOM484375]

PRICES

Precious metals prices at 0007 GMT
Metal Last Change Pct chg Day ago pct MA 30 RSI
Spot gold $944.75 $3.20 +0.34% +5.32% $860.10 50
Spot silver $13.94 $0.15 +1.09% +16.36% $11.29 43
Spot plat $1238.50 $4.00 +0.32% +0.86% $1218.32 53
COMEX gold $943.70 $1.70 +0.18% +0.63% $944.88 47
TOCOM gold 2,871 22 +0.77% -0.35% 2,904 42
TOCOM plat 3,761 61 +1.65% -0.45% 3,723 48
Currencies
Euro/dlr $1.425 $0.001 +0.09% +0.83%
Dlr/yen 94.16 0.10 +0.11% -0.55%
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Risa Maeda)