PRECIOUS-Gold rises, investors sell dollar to buy other assets

                                
 TOKYO, Sept 9 (Reuters) - Gold prices rose on Wednesday,
hovering just above $1,000 per ounce but below the highs marked
the previous day, as investors sold the dollar to buy riskier
assets such as stocks and commodities.
                                
 FUNDAMENTALS
                                
 * Gold surged past $1,000 per ounce on Tuesday on pent-up
technical momentum and dollar weakness, but market watchers were
mixed on whether the yellow metal could stay above that level.
                                
 * Spot gold <XAU=> rose 0.5 percent to $1,000.50 per ounce as
of 0010 GMT, compared to New York's notional close of $995.20.
Spot gold rose as high as $1,007.45 per ounce on Tuesday, its
highest since March 2008.
                                
 * U.S. gold futures for December delivery <GCZ9> edged up 0.3
percent to $1,002.60 per ounce, compared with $999.80 per ounce
on the COMEX division of the New York Mercantile Exchange. On
Tuesday, gold futures rose as high as $1,009.70, their highest
since February.
                                
 * The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings stood at 1,077.63 tonnes
as of Sept. 8, unchanged from Monday. [GOL/SPDR]
                                
 MARKET NEWS
                                
 * India's gold demand is likely to fall more with world
prices at $1,000 an ounce, the president of the Bombay Bullion
Association said on Tuesday. [ID:nBMA005875]
                                
 * U.S. stocks advanced on Tuesday on an uptick in corporate
deal activity while the weak dollar led to gains in commodities,
lifting shares of oil and mining companies. [.N]
                                
 * The Nikkei eased 0.5 percent. [.T]
                                
 * The dollar remained pressured on Wednesday, after sinking
the previous day to its lowest level against the euro when
traders sold the U.S. currency amid a rosy global outlook. [USD/]
                                
 DATA EVENTS
                                
 * The following data is expected on Wednesday: <ECON>
                                
 - Bank of England starts two-day meeting. (N/A)
                                
 - German August final CPI data. (0600 GMT)
                                
 - UK July trade data. (0830 GMT)
                                
 - Weekly U.S. mortgage market index. (1100 GMT)
                                
 - ICSC/Goldman Sachs weekly U.S. chain store sales. (1145
GMT)
                                
 - Redbook weekly U.S. retail sales. (1255 GMT)
                                
 - U.S. Treasury Secretary Timothy Geithner and U.S. Vice
President Joe Biden speak. (1430 GMT)
                                
 - Federal Reserve releases Beige Book. (1800 GMT)
                                
 RELATED NEWS
 >Momentum ushers gold above $1,000/oz                     [GOL/]
 >Gold powers through $1,000; lifts oil, copper    [ID:nL8308387]
 >SAfrica's Q2 gold production down 9.3 pct yr/yr   [ID:nWEA9947]
 >Gold at $1,000 seen denting India festive demand[ID:nDEL545896]
 >AngloGold CEO: Gold could stay above $1,000     [ID:nN08282143]
 >Rising gold price threatens flood of supply     [ID:nSYD366633]
 >Gold may hit $1,250/oz if fear returns to markets[ID:nL8591445]
 >Hedge fund eyes gold at $1,600, sells equities   [ID:nL8425516]
 >IMF suggests earlier recovery; U.S. stocks rise  [ID:nL8515328]
                                
 PRICES
                                
 Precious metals prices at 0012 GMT
 Metal         Last      Change  Pct chg  Day ago pct  MA 30  RSI
  Spot gold    $1000.90    $5.70  +0.57%   +11.58%    $860.10  84
 Spot silver    $16.60    $0.19  +1.16%   +38.56%     $11.29   90
 Spot plat    $1281.00   -$2.00  -0.16%   +34.98%    $948.98   71
 COMEX gold   $1001.20  $113.00 +12.72%   +11.31%    $857.64   83
 TOCOM gold      2,982      399 +15.45%   +14.30%      2,476   70
 TOCOM plat      3,808     1068 +38.98%   +37.72%      2,659   59
 Currencies
 Euro/dlr       $1.449   $0.135 +10.31%    +9.97%
 Dlr/yen         92.28     1.90  +2.10%    +3.78%
 (Reporting by Chikako Mogi; Editing by Hugh Lawson)