PRECIOUS-Gold up around 1 pct as U.S. equities slip, dlr down
* SPDR Gold Trust holding steady, seen bullish
* Physical gold buying subdued in India, China
* Volatility could continue until FOMC meeting next week
(Updates throughout, adds comment, second byline, dateline, pvs LONDON) NEW YORK/LONDON, June 12 (Reuters) - Gold rose around 1 percent on Wednesday, as losses in U.S. equities and a drop in the U.S. dollar prompted the metal to rebound from the previous session's three-week low. After earlier rangebound trade with no major U.S. economic data, bullion extended gains as the S&P 500 index fell 0.5 percent on persistent worries over how soon central banks will begin to scale back supportive measures. Better investment demand, reflected by the absence of fresh outflow from the world's largest gold-backed exchange-traded fund SPDR Gold Trust, also boosted bullion investor sentiment. "It's a sign that the worst of the money outflows in the gold market is over. We are still not out of the woods but at least it shows that the gloom-and-doom forecast of $1,000 gold is unrealistic for now," said Bill O'Neill, partner at commodities investment firm LOGIC Advisors. Spot gold was up 0.9 percent at $1,390.76 an ounce by 12:27 p.m. EDT (1626 GMT). U.S. Comex gold futures for August delivery climbed $13.30 an ounce to $1,390.40. Turnover was low with volume under 100,000 lots in midday, on track to finish sharply below its 30-day average of 220,000, preliminary Reuters data showed. Gold also benefited as the dollar index slipped 0.4 percent, as the greenback tumbled against the yen. Analysts said volatility in financial markets may continue until the Fed's meeting next week and an accompanying statement from Fed Chairman Ben Bernanke on Wednesday. "Markets will however wait for cues from the Fed next week," Pradeep Unni, a senior analyst at Richcomm Global Services, said. "Lower imports from India after the duty hike will also be negative for gold."
BUYING SOFT IN INDIA, CHINA Demand was subdued in India, the world's largest gold consumer, which last week moved to cut gold imports by lifting import duties to 8 percent. Gold imports have been a major contributor to India's wide current account deficit.
A lack of physical trading in China, whose markets are shut due to the Dragon Boat Festival holiday, further undermined gold, dealers said. Bullion held by SPDR Gold Trust was unchanged after the ETF reported its largest inflow in over a month on Monday, of 2.7 tonnes. Its holdings remained near four-year lows, however, down 340 tonnes this year. Among other precious metals, silver was up 1.2 percent at $21.86 an ounce. Platinum eased 51 cents to $1,478.99 an ounce, while palladium edged up 0.2 percent at $751.22 an ounce. Prices at 12:27 p.m. EDT (1626 GMT)
LAST NET PCT YTD CHG CHG CHG US gold 1390.40 13.30 1.0% -17.0% US silver 21.855 0.002 0.7% -27.7% US platinum 1482.50 2.60 0.2% -3.7% US palladium 754.55 2.05 0.3% 7.3% Gold 1390.76 11.77 0.9% -16.9% Silver 21.86 0.25 1.2% -27.9% Platinum 1478.99 -0.51 0.0% -3.8% Palladium 751.22 1.72 0.2% 7.0% Gold Fix 1382.75 5.50 0.4% -16.9% Silver Fix 21.78 20.00 0.9% -27.3% Platinum Fix 1481.50 1.50 0.1% -2.7% Palladium Fix 754.00 4.50 0.6% 7.9%
(Editing by Jason Neely and Nick Zieminski)