PRECIOUS-Gold down but off two-week low, EU debt crisis eyed

* Gold hits two-week low, dollar gain weighs
* Development in euro zone debt crisis in focus
* Gold ETF hit record, new inflows seen into New York fund
* Coming up: U.S. jobless claims on Thursday

(Recasts, updates comment, market activity, changes byline,
dateline, previous LONDON)
By Frank Tang
NEW YORK, Sept 26 (Reuters) - Gold prices ended down on
Wednesday but off an earlier two-week low as a stronger dollar
and weaker crude oil triggered profit-taking after bullion's
recent sharp rally boosted by stimulus by central banks around
the world.
The metal was weighed down by gains in the U.S. dollar after
data showed new U.S. home sales held near two-year highs in
August and prices vaulted to their highest in more than five
years.
Bullion has extended its losses to a third straight day. It
is still 3.5 percent higher for the month following a sharp
rally on hopes the central banks will keep the credit flowing by
offering bullion-friendly stimulus.
On Tuesday, gold fell as large-scale protests against
anti-austerity measures in Spain rekindled fears about the
European Union's three-year-old debt crisis.
"Investors will be keeping a close eye on the events in the
EU," said Sean Lusk, precious metals analyst at futures
brokerage Ironbeam.
"As we are at the month- and quarter-end, today's selloff
probably encompassed some profit taking in the precious metals,"
Lusk said.
Spot gold was down 0.5 percent at $1,751.50 an ounce
by 3:51 p.m. EDT (1951 GMT), recovering from a two-week low
reached earlier in the session at $1,737.50 an ounce.
U.S. gold futures for December delivery settled down
$12.80 at $1,753.60, with trading volume about 10 percent above
its 250-day average.
Worries over the euro zone debt crisis, as Greece faced its
biggest anti-austerity strike for months and Spain's central
bank suggested the country's recession was deepening, also
knocked European shares and crude oil futures sharply lower.

GOLD INVESTMENT FIRMS
Investment in gold has been firm, with holdings of
gold-backed exchange-traded funds rising by nearly 300,000
ounces on Tuesday, according to Reuters data, to
a record 74.063 million ounces, with most fresh flows moving
into the SPDR Gold Trust.
Silver rose 0.7 percent to $33.93 an ounce. Spot
platinum was up 0.5 percent at $1,628.20 an ounce, while
palladium was down 1.1 percent at $624 an ounce.
Platinum prices have retreated from the 6-1/2-month highs
they hit this month after violence linked to labor unrest at a
mine operated by number three producer Lonmin in South Africa
led to 45 deaths.

3:51 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold DEC 1753.60 -12.80 -0.7 1738.30 1768.40 177,268
US Silver DEC 33.94 -0.008 0.0 33.360 34.110 46,162
US Plat OCT 1634.40 2.60 0.2 1612.30 1636.20 10,535
US Pall DEC 625.85 -15.00 -2.3 617.45 640.95 3,991

Gold 1751.50 -8.54 -0.5 1738.48 1765.40
Silver 33.930 0.230 0.7 33.380 34.040
Platinum 1628.20 7.70 0.5 1616.25 1633.00
Palladium 624.00 -7.20 -1.1 619.77 638.25

TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 196,471 153,788 183,917 16.65 -0.54
US Silver 48,275 59,146 52,839 35.84 7.55
US Platinum 22,355 20,017 9,400 22.75 -0.90
US Palladium 4,020 8,643 4,663

(Additional reporting by Jan Harvey in London; Editing by James
Dalgleish)