RPT-PRECIOUS-Gold bounces back to around $1,010

(Repeats to additional subscribers)

* Liquidation worries to increase towards end of the month

* SPDR Gold holdings XAUEXT-NYS-TT steady

By Miho Yoshikawa

TOKYO, Sept 24 (Reuters) - Spot gold rallied to trade around
$1,010 on Thursday as the precious metal continued to look to the
dollar for direction, though a sense of caution prevailed due to
the threat of heavy liquidation of futures positions.

Spot gold XAU= -- which fell in the previous session after
the dollar turned higher -- is currently down about 1 percent
from the 18-month high of $1,023.85 hit last Thursday.

"The trend of a strong euro and weak dollar is what's keeping
the price of gold above $1,000," said Shuji Sugata, a manager at
the Mitsubishi Corp Futures & Securities research team.

The euro was around $1.4746 EUR=, recovering from earlier
losses when it fell as low as $1.4685 on trading platform EBS, to
trade nearly flat from late US trade.

Sugata added, however, that investors needed to watch the
long positions in the New York market.

Noncommercial net long positions in gold futures in New York
are at an all-time high, raising concerns that this together with
the sharp rally, which has prompted the precious metal to rise as
much as 16 percent this year, could lead to a bout of selling.

"Concerns about long liquidation are likely to increase
towards the end of the month, and this is something we'll have to
keep an eye out for," he said.

Traders in Tokyo returned to the market after a three-day
break from Monday to Wednesday due to a series of national
holidays.

Gold XAU= was at $1,010.05 an ounce at 0217 GMT, up 0.3
percent from the notional close in New York of $1,007.05, after
earlier rising as high as $1,012.0.

U.S. gold futures for December delivery GCZ9 were at
$1,011.7 an ounce, down 0.3 percent.

Sugata said the results of the latest Federal Reserve Open
Market Committee (FOMC) meeting held no surprises.

The Federal Reserve on Wednesday kept key U.S. interest rates
unchanged, and pledged to keep rates low for an extended period.
It also upgraded its assessment of the U.S. economy.
[ID:nN23390829]

The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust (GLD), said its holdings stood at 1,101.735
tonnes as of Sept. 23, unchanged from the previous business day.
[GOL/SPDR]

Gold buying by India, one of the world's largest consumers,
picked up due to the festival season when people traditionally
buy ornaments as gifts for their loved ones. [ID:nBOM519368]
[GOL/AS]

Japan's Nikkei stock average rose 1.7 percent on Thursday,
with exporters rising after Federal Reserve statements that U.S.
economic activity was picking up outweighed fears about a
stimulus withdrawal by the Fed. [.T]

PRICES
Precious metals prices at 0216 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 1010.15 3.10 +0.31 14.77
Spot Silver 16.79 0.08 +0.48 48.32
Spot Platinum 1322.00 3.50 +0.27 41.85
Spot Palladium 295.50 3.50 +1.20 60.16
TOCOM Gold 2975.00 -6.00 -0.20 15.62 23573
TOCOM Platinum 3888.00 -27.00 -0.69 46.61 5099
TOCOM Silver 493.50 -10.30 -2.04 54.56 352
TOCOM Palladium 871.00 -10.00 -1.14 58.36 71
Euro/Dollar 1.4733
Dollar/Yen 91.26
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Chris Gallagher)