PRECIOUS-Gold edges up on Europe stimulus hopes; US data weighs

* Strong US data adds to QE3 uncertainty; EZ economy still
needs help
* Spot gold could fall to $1,584.49/oz - technicals
* Coming up: U.S. industrial output, July; 1315 GMT

(Updates prices)
By Rujun Shen
SINGAPORE, Aug 15 (Reuters) - Gold edged up on Wednesday as
bleak data from the euro zone led to hopes of more stimulus
measures from the debt-ravaged region, although indications of
an improvement in the U.S. economy kept bullion near a 1-1/2
week low hit in the previous session.
Gold slid on Tuesday to its lowest since Aug. 3 as U.S.
retail sales, which rose in July for the first time in four
months, prompted investors to scale back their bets based on
dimming expectations of imminent stimulus measures from the
Federal Reserve.
But data showing the euro zone's economy shrank in the
second quarter helped limit the drop in gold.
"The good news for economy is bad news for gold," said
Yuichi Ikemizu, head of commodity trading, Japan, Standard Bank,
adding that the lack of clarity on monetary policy direction
will keep interest in trading gold muted.
"Gold is unlikely to move out of the current range until end
of August or even September."
Investors are now eyeing the Fed symposium at the end of
August and the central bank's policy meeting in mid-September
for clues on the Fed's stance on another round of bond buying,
known as QE3.
The recovery in consumer spending, a pillar of the U.S.
economy, could drive faster economic growth in the third
quarter, casting doubt on the necessity of QE3.
Spot gold inched up 0.3 percent to $1,602.21 an ounce
by 0630 GMT, after touching a low around $1,598 earlier in the
session. It hit an intraday low of $1,594.10 on Tuesday, its
lowest since Aug 3.
U.S. gold futures contract for December delivery
gained 0.1 percent to $1,604.70.
Technical analysis suggested that spot gold could fall to
$1,584.49 an ounce during the day, said Reuters market analyst
Wang Tao.

STIMULUS HOPES ALIVE
The euro zone economy shrank in the second half, despite
better-than-expected performance in German and French economies,
increasing pressure on policymakers to take stimulus measures.
Investors are still waiting for the European Central Bank to
resume its bond-buying programme, after the bank's chief Mario
Draghi last month vowed to do everything possible to hold the
euro zone together.
Rampant cash printing by central banks stokes inflation
outlook and drives investors to bullion, which is seen as an
effective hedge against rising prices.
Investor interest in exchange-traded gold funds improved,
with holdings of the funds rising to the highest
level in nearly a month on Tuesday, at 2,190.583 tonnes.
Holdings of SPDR Gold Trust, the world's top gold ETF,
remained unchanged at 1,258.148 tonnes, highest since mid-July.
But the number was 2.7 percent lower than this year's high hit
in late February.
Prominent hedge fund manager John Paulson raised his stake
in the fund in the second quarter of 2012, but Eton Park
dissolved all of its 9,989 shares, a U.S. regulatory filing
showed on Tuesday.
Supply disruption at the South African operations of the
world's No.3 platinum producer Lonmin helped prices of platinum
to extend gains into a second day. The metal was up 0.6
percent at $1,399.24.

Precious metals prices 0630 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1602.21 4.17 +0.26 2.46
Spot Silver 27.84 0.09 +0.32 0.54
Spot Platinum 1399.24 8.64 +0.62 0.45
Spot Palladium 576.97 3.97 +0.69 -11.58
COMEX GOLD DEC2 1604.70 2.30 +0.14 2.42 7110
COMEX SILVER SEP2 27.81 0.04 +0.15 -0.39 1959
Euro/Dollar 1.2335
Dollar/Yen 78.84
COMEX gold and silver contracts show the most active months