PRECIOUS-Palladium, platinum at multimonth highs, pull gold up

                                
 * Spot palladium hits 18-mth high, platinum hits 17-mth peak
                                
 * Solid buying demand for gold seen near $1,100/oz
                                
 * Holdings by SPDR Gold Trust <GLD> fall 0.914 tonnes
                                
 By Risa Maeda
                                
 TOKYO, Jan 18 (Reuters) - Spot palladium and platinum hit
multimonth highs on Monday, helped by investment demand after the
launch of new U.S.-based exchange-traded funds backed by the
metals, pulling gold higher.
                                
 Following the launch of the funds earlier this month,
palladium and platinum have benefited from buying interest as
well as expectations that such interest will remain intact for
some time.
                                
 "I am hearing of U.S. and European dealers buying these
metals but I haven't seen Chinese buyers as prices have climbed
recently," said Yuichi Ikemizu, the Tokyo branch manager for
Standard Bank.
                                
 "The outlook for platinum and palladium looks quite bullish
while gold is expected to remain rangebound. The widening spread
between platinum and gold reflects how strong sentiment is for
platinum," he said, adding that investment demand related to the
exchange-traded funds was likely to remain robust.
                                
 Spot platinum <XPT=> rose as high as $1,626.00 per ounce, its
highest since August 2008, and up 0.2 percent from the notional
close in New York on Friday.
                                
 Spot palladium <XPD=> rose as high as $457.50 an ounce as of
0736 GMT, its highest since July 2008, and up 1 percent from
Friday's notional close in New York.
                                
 Gold prices were up slightly but the topside was limited by
firmness in the dollar, as the closure of New York markets later
in the day kept many investors on the sidelines.
                                
 Spot gold <XAU=> inched up 0.5 percent to $1,135.60 per ounce
as of 0729 GMT compared with New York's notional close of
$1,129.90.
                                
 New York energy and commodity markets are closed on Monday
for Martin Luther King Jr. Day.
                                
 U.S. gold futures for February delivery <GCG0> were at
$1,135.80 per ounce, up 0.5 percent. Electronic trading of the
NYMEX/COMEX products on CME Globex is running for the Jan. 19
trade date. [ID:nN15483693]
                                
 Gold was underpinned by physical demand on any fall towards
$1,100, helped by buying from gold jewellers in India.
[ID:nSGE60E06V]
                                
 "Gold is being supported by solid demand near $1,100, but any
rise closer to $1,200 is seen as a good chance to lock in
profits, resulting in the boxed-range trade," said Tatsufumi
Okoshi, a senior economist at Nomura Securities Co.
                                
 "The biggest day-to-day market factor now is the direction of
the dollar," Okoshi said.
                                
 The dollar remained firm against major currencies on Monday,
with the euro <EUR=> vulnerable to falls on concerns about fiscal
problems buffeting Greece. [USD/]
                                
 Spot gold hit a five-week high of $1,161.50 on Jan. 11. Gold
has fallen 2.3 percent since then, as a rise in the greenback
hurt investor sentiment.
                                
 A higher dollar often trims the precious metal's allure as an
alternative asset.
                                
 Gold was also hurt by a broad sell-off in commodities last
week after China took a major step towards tightening monetary
policy by increasing reserve requirements for its banks.
                                
 On Thursday, China is expected to report a 20 percent
year-on-year jump in industrial output for December. Also on
Thursday, China is expected to report a return to double-digit
economic growth in the fourth quarter of 2009. [ID:nN15141212]
                                
 "There's no doubt about an uptrend in Chinese demand for
commodities. The gold market would react only if the dollar is
affected by upcoming Chinese data," Nomura's Okoshi said.
                                
 The holdings by the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust <GLD>, fell 0.914 tonnes to
1,112.836 tonnes on Jan 15. [GOL/SPDR]
                                
 For a graphic on the SPDR holdings, click:
http://link.reuters.com/teh24h
                                
 Despite recent investment outflows from the gold ETF,
Friday's data showed speculative buyers were returning, albeit
gradually.
                                
 Net long noncommercial U.S. gold futures positions rose by
1,575 contracts, or 0.7 percent, to 229,342 contracts in the week
to Jan 12, according to the weekly Commitments of Traders report
published by the Commodity Futures Trading Commission (CFTC).
[ID:nN15211888]
                                
 That marked the first weekly rise in such positions since in
the week ended on Dec 15.
                                
 Precious metals prices at 0730 GMT
 Metal             Last    Change  Pct chg  YTD pct chg  Turnover
 Spot Gold        1135.55    5.65   +0.50      3.64
 Spot Silver        18.59    0.23   +1.25     10.46
 Spot Platinum    1621.50   25.00   +1.57     10.53
 Spot Palladium    456.00    3.50   +0.77     12.45
 Euro/Dollar       1.4375
 Dollar/Yen         91.02
 TOCOM prices in yen per gram. Spot prices in $ per ounce.
 (Additional reporting by Chikako Mogi; Editing by Chris
Gallagher)