* SPDR logs inflow of 1.8 tonnes, 1st since June 10
* China H1 gold consumption jumps sharply year-over-year
* Tightness in physical market underpins prices
* Coming up: US import, export prices, retails sales Tuesday
(Adds trader comment, details of physical tightness, second
By Frank Tang and Clara Denina
NEW YORK/LONDON, Aug 12 Gold rose nearly 2
percent on Monday, hitting its highest in nearly three weeks as
strong Chinese gold consumption and an inflow to gold-backed
exchange-traded funds fuelled hopes of resurgent physical and
Silver soared more than 4 percent to a near two-month high
on gold's coattails, while recent strong U.S. and Chinese
economic activities prompted some investors to buy silver as an
The yellow metal extended its winning streak to a fourth
consecutive session after Chinese trade data showed the
country's gold demand surged year-over-year in the first six
"Gold is rallying on indications of some physical demand in
the market," said Bill O'Neill, partner of commodities
investment firm LOGIC Advisors.
"But the ETF holdings increase has to be sustained to
indicate it is the start of a new trend," O'Neill said.
Holdings in the world's largest golf ETF SPDR Gold Trust
grew by nearly 2 tonnes to 911.13 tonnes on Friday - the
first increase since June 10. The fund has seen more than 435
tonnes in outflows this year, about $19 billion at current
Spot gold rose 1.7 percent to $1,336.24 an ounce,
having earlier traded as much as 2.2 percent higher at
$1,343.06, its highest since July 24.
U.S. Comex gold futures for December settled up $22
at $1,334.20 an ounce, with trading volume about 30 percent
below its 30-day average, preliminary Reuters data showed.
On charts, Monday's rally lifted gold sharply above its
50-day moving average, and analysts said the next key technical
resistance is the 100-day moving average near $1,380 an ounce.
Gold posted its second weekly gain last week as recent
stronger economic indicators around the world bolstered
bullion's inflation-hedge appeal.
Silver rose to a near two-month high of $21.45 an
ounce and was last traded up 4.2 percent at $21.39.
Physical supply tightness was reflected by narrowing spreads
between delivery months in the U.S. Comex futures market.
For a second straight session, the October contract settled
10 cents above that of December, a market condition known as
backwardation where the nearby delivery price of a commodity
rises above the price for future delivery.
Record Asian physical demand has soaked up gold bars and
coins since bullion's $225 two-day selloff in April,
contributing to some shortages in the near-term market, dealers
Unlike other commodities, gold is also a highly liquid
international monetary vehicle and a prolonged backwardation is
rare for the metal, traders said.
Among platinum group metals, platinum was down 0.4
percent to $1,493.72 an ounce, while palladium dropped
0.6 percent to $735 an ounce.
2:36 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold DEC 1334.20 22.00 1.7 1313.50 1343.70 128,700
US Silver SEP 21.340 0.933 4.6 20.620 21.445 62,967
US Plat OCT 1498.70 -1.90 -0.1 1496.50 1511.00 8,226
US Pall SEP 737.60 -3.40 -0.5 736.50 747.00 3,626
Gold 1336.24 22.24 1.7 1315.21 1343.06
Silver 21.390 0.860 4.2 20.610 21.450
Platinum 1493.72 -5.78 -0.4 1498.50 1507.50
Palladium 735.00 -4.50 -0.6 739.50 745.50
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 138,633 203,951 188,357 26.97 5.17
US Silver 76,230 45,590 54,088 28.02 1.16
US Platinum 8,402 9,434 12,482 20.57 -1.12
US Palladium 4,674 3,794 5,344
(Additional reporting by A. Ananthalakshmi in Singapore and Z.
Sun in London; Editing by Dale Hudson, Keiron Henderson and Nick