US gold ends up as dollar falls, economy recovers

NEW YORK, Sept 15 (Reuters) - U.S. gold futures reversed
early losses to end moderately higher on Tuesday, turning up
when the dollar gave up gains. Gold also got support from a
stronger-than-forecast U.S. retail sales reading that implied
economic growth and possible inflationary environment down the
road, traders said.

For the latest detailed report, click on [GOL/].

GOLD

* December gold GCZ9 gained $5.20 to close at $1,006.30
an ounce on the COMEX division of the New York Mercantile
Exchange.

* The range extended up to a $1,0011.50 an ounce high, from
a low at $993 an ounce.

* Gold prices remained modestly lower early when the dollar
strengthen, but then turned higher when the dollar lost ground
- traders.

* "It turned higher predominantly on the perception of a
weakening dollar, higher oil prices, on better-than-expected
retail sales, and reduced inventory," said Frank McGhee, head
precious metals trader at Integrated Brokerage Services LLC.

* The U.S. dollar edged lower against a basket of
currencies as gains in global stock markets reduced the
greenback's appeal as a safe haven. [USD/]

* Sales at U.S. retailers rose at their fastest pace in
3-1/2 years in August as government-sponsored auto incentives
buoyed demand for motor vehicles, according to U.S. data. Sales
outside the auto sector also were strong. [ID:nN14478930].

* Gold's upswing was also due to the potential for
increased inflation, especially after the latest U.S.
government series came in stronger than projected - traders.

* With increased overall economic activity, McGhee added,
"You've now got a continuing situation of a reinflation of the
economy without the ability of the government to tighten as
they would in a normal environment."

* U.S. producer prices rose more than twice as much as
expected in August on the biggest surge in gasoline prices in
more than 10 years. Prices declined less than expected compared
with a year ago, a government report showed. [ID:nN15543702].

* Investor demand for gold remained healthy and some buyers
entered the market on dips - traders.

* With positive chart signals, prices consolidated around
$1,000 an ounce, especially after Friday's run up in December
gold to $1,013.40 an ounce, its highest since Feb. 20.

* Spot gold XAU= firmed to $1,006.75 an ounce from
$997.95 an ounce in late Monday trade in New York.

* London afternoon gold XAUFIX= was fixed at lower at
$996 an ounce.

SILVER

* December silver SIZ9 raced up 37.70 cents to finish at
$17 an ounce, rising with base metals.

* Range extended up to $17.08 from a low of $16.44 an
ounce.

* Silver traded higher with other industrial metals,
reversing early losses, after strong U.S. retail sales pointed
to an improving economic climate.

* Spot silver XAG= at $17 an ounce was higher than $16.50
an ounce in late Monday dealings.

* London silver XAGFIX= was fixed higher at $16.52 an
ounce.

PLATINUM

* October platinum PLV9 added 60 cents to settle at
$1,320.30 an ounce.

* Spot platinum XPT= firmed with gold, moving up to
$1,324.50 an ounce from $1,312.50 an ounce late Monday.

PALLADIUM

* December palladium PAZ9 rose 50 cents to end at $296.25
an ounce.

* Spot palladium XPD= was quoted at $291.50, up from $290
an ounce at Monday's finish.
(Reporting by Carole Vaporean; Editing by Lisa Shumaker)