* Gold hits 11-week high of $1,406.01
* Bullion seen vulnerable for pullback after rallies
* Top gold-backed fund sees biggest 1-day inflow in a year
* Coming up: U.S. S&P home prices index, consumer confidence
(Adds analyst's comment, technical view, second byline,
dateline, updates market activity)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Aug 26 Gold prices rose to an
11-week high on Monday after a surprisingly weak report on U.S.
durable goods boosted hopes that the Federal Reserve will
maintain its bond-buying to prolong economic stimulus.
The metal breached $1,400 for the first time since June 7
after data showed orders for long-lasting U.S. manufactured
goods recorded their biggest drop in nearly a year in July,
while a gauge of planned business spending on capital goods also
Monday's reports fed into an increasingly negative economic
picture and followed data for July industrial production,
housing starts and new home sales that have suggested growth
this quarter will probably not accelerate as much as economists
Gold has now rallied over $200 since the end of June when
prices hit three-year lows. Recent disappointing U.S. economic
data added to confusion over when the Fed may curb its
bond-buying stimulus, which has kept U.S. interest rates near
record lows and increased the allure of hard assets.
Some analysts say gold is due for a pullback after rising
about 10 percent in the past three weeks.
"The gains were mainly from short covering. If gold can't
convincingly break above $1,400, we may see profit taking," said
Howard Wen, metals analyst at HSBC.
Spot gold edged up 0.3 percent to stand at $1,400.61
an ounce at 3:38 PM EDT (1938 GMT), having earlier peaked at
U.S. COMEX gold futures for December delivery settled
down $2.70 at $1,393.10 an ounce.
Trading volume was down about 50 percent from the 30-day
average, preliminary Reuters data showed. The London market was
shut Monday for the Bank Holiday.
BIGGEST ETF INFLOW IN 12 MONTHS
As a gauge of investment demand, holdings of the SPDR Gold
Trust, the world's largest gold-backed exchange-traded
fund, rose 6.61 tonnes to 920.13 tonnes on Friday, the ETF's
biggest one-day inflow in percentage terms in a year.
On charts, gold's break above $1,400 and bullish price
patterns suggest more gains are in store for the precious metal
which may have bottomed out two months ago, technical analysts
Private investors were sellers of gold and silver in the
last several months, according to online precious metals market
Sellers in gold exceeded buyers by 22 percent in the three
months from May to July, while U.S. gold sellers exceeded buyers
by 15 percent over the same period, said Miguel Perez-Santalla,
vice president at BullionVault.
Among other precious metals, silver rose 1 percent to
$24.22 an ounce. Platinum was up 0.6 percent to $1,542.49
an ounce, while palladium fell 0.7 percent to $743.72 an
3:38 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold DEC 1393.10 -2.70 -0.2 1388.40 1407.00 95,414
US Silver SEP 24.010 0.272 1.1 23.800 24.425 54,796
US Plat OCT 1544.50 2.90 0.2 1531.10 1550.80 6,204
US Pall SEP 746.05 -4.80 -0.6 743.10 755.00 7,561
Gold 1400.61 4.17 0.3 1390.23 1406.01
Silver 24.220 0.230 1.0 23.900 24.400
Platinum 1542.49 9.29 0.6 1534.50 1547.00
Palladium 743.72 -5.24 -0.7 747.00 753.00
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 100,158 181,859 190,211 24.99 2.48
US Silver 77,075 54,053 53,242 32.41 0.79
US Platinum 6,358 9,134 12,491 20.62 0.06
US Palladium 14,228 4,687 5,313
(Additional reporting by A. Ananthalakshmi in Singapore;
editing by Keiron Henderson and Alden Bentley)