April 9, 2019 / 10:34 AM / 5 months ago

PRECIOUS-Gold scales more than one-week high as dollar wilts

* Dollar dips to lowest in more than a week

* China, Turkey raise gold holdings

* SPDR gold holdings drop for 6th straight session

* Platinum hovers below 10-month peak hit on Monday (Updates prices)

By Sumita Layek

April 9 (Reuters) - Gold rose on Tuesday to its highest in more than a week, supported by a retreating dollar and increased buying by central banks.

Spot gold was up 0.6 percent at $1,304.37 per ounce at 1251 GMT, having hit its loftiest since March 28 at $1,306.04. U.S. gold futures were up 0.6 percent at $1,309.7 an ounce.

“Seeing something of a correction in the U.S. dollar, which has been helpful laterally. Gold seems to have found a floor,” said Ross Norman, chief executive at Sharps Pixley.

Central banks had extended 2018’s record levels of gold buying into this year, he said. “So every day there may be small and minor countries with modest amounts to buy, but collectively it tells you something.”

The dollar index fell to its lowest in more than a week on Tuesday following subdued U.S. data and gains in commodity-linked currencies driven by surging oil prices.

Gold is considered a hedge against oil-led inflation.

New orders for U.S.-made goods fell modestly in February after non-farm payrolls data last week signalled a slowdown in wage growth.

“The decline in wage inflation takes the pressure off the U.S. Federal Reserve and lets it remain dovish and delay rate hikes or maybe switch gears, and that’s supportive for gold,” said Ilya Spivak, senior currency strategist at DailyFX.

Investors are awaiting minutes of the Fed’s March meeting, due on Wednesday.

China, the world’s biggest gold consumer, raised its gold reserves for a fourth straight month in March, when Turkey also increased its holdings.

But holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell for a sixth straight session to 760.49 tonnes on Monday.

Among other precious metals, spot platinum slipped 0.9 percent to $896.92 per ounce, after touching its highest since the end of May last year in the previous session.

Palladium was up 0.2 percent at $1,386.53 an ounce, while silver gained 0.2 percent at $15.28. (Reporting by Sumita Layek and K. Sathya Narayanan in Bengaluru; editing by John Stonestreet and Dale Hudson)

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