* Buy-stops fuel bullion's rise
* Gold prices lifted as momentum of dollar rally slows
* U.S. durable goods orders up record 22.6 percent in July
(New throughout, updates prices; adds byline, NEW YORK
By Chris Prentice and Clara Denina
NEW YORK/LONDON, Aug 26 Gold rose on Tuesday
after a pause in the dollar rally prompted chart-based buying,
but pared gains as European stimulus hopes and strong U.S. data
pushed investors to equities.
Spot gold hit a session high at $1,290.80 an ounce in
early trade as stop orders were triggered on a break of the
200-day moving average just above $1,280. The contract was up
0.6 percent at $1,283.57 by 2:26 p.m. EDT.
December U.S. gold futures closed up $6.30, or 0.5
percent, at $1,285.20 an ounce.
Bullion continued to track the U.S. dollar. A stronger
greenback weighs on dollar-traded commodities, making them more
expensive to holders of other currencies.
"The dollar's rally has started to stall. That has helped
gold out a bit," said Stephen Platt, an analyst at futures
brokerage Archer Financial Services.
Prices have been lifted by short-covering due to technical
support near a two-month low of $1,273.06 set on Thursday amid
speculation of an eventual increase in U.S. interest rates.
Worries over geopolitical risk due to tensions between
Russia and Ukraine, as well as violence in the Middle East,
underpinned. Gold is usually seen as an insurance against
financial and political risk.
Bullion pared the day's gains as hopes of more stimulus from
the European Central Bank and positive U.S. data boosted buying
in global equities. The benchmark S&P 500 hit a fresh record
The Conference Board's measure of U.S. consumer confidence
rose more than expected in August, hitting its highest level
since October 2007. Separately, orders for long-lasting U.S.
manufactured goods posted their biggest gain on record in July.
Data released late Monday added to potential support,
showing that Russia hiked its gold holdings for a fourth
straight month in July.
Demand support was otherwise limited. Physical buying from
jewellers in Asia, which had moderately re-emerged amid last
week's price drop, dried up on Tuesday.
Holdings of the SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, however, fell 0.4 percent to
797.09 tonnes on Monday from 800.08 tonnes on Friday.
Premiums for gold bars in Hong Kong rose to 70 cents to
$1.10 to the spot London prices, higher than the 50 cents to
$1.00 quoted late last week. In Singapore, premiums were steady
at 80 cents to $1 an ounce to spot London prices.
Silver rose on gold's coattails. It was up 0.4
percent to $19.41 an ounce, climbing further from Thursday's
two-month low of $19.25.
Spot platinum, which touched its lowest level since
May 5 at $1,407.30 last week, was up 0.1 percent at $1,412.25 an
ounce, while spot palladium was down 0.6 percent at
$882.75 an ounce.
(Additional reporting by Lewa Pardomuan in Singapore; Editing
by David Evans, Pravin Char and Chizu Nomiyama)