Gold climbs on weak U.S. data, increase in SPDR holdings

SINGAPORE (Reuters) - Gold climbed more than 1 percent on Monday to its highest in nearly two weeks on soft U.S. data and as holdings in the world's biggest gold exchange-traded fund rose for the first time in two months.

FUNDAMENTALS

* Spot gold had gained 1 percent to $1,328.91 an ounce by 0010 GMT, after advancing 0.2 percent on Friday as a weaker stock market increased its safe-haven appeal.

* U.S. gold added $16 to trade at $1,328.50. Comex silver rose 2 percent.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.2 percent to 911.13 tonnes on Friday - the first increase since June 10.

* U.S. wholesale inventories unexpectedly fell for a second straight month in June, prompting economists to trim their second-quarter economic growth estimates.

* Investors are watching economic data to gauge when the Federal Reserve bank will begin reducing its commodities-friendly stimulus measures. Weak data could prompt the U.S. central bank to hold back on the cuts.

* Wall Street closed out its worst week since June on Friday, pulling back from record highs as investors focused on the outlook for Fed stimulus.

* Hedge funds and money managers cut their net long positions in gold and silver in the week to August 6, a report by the Commodity Futures Trading Commission showed on Friday.

* Newcrest Mining , the world's fifth largest gold producer, reported its first annual loss since 2002 on Monday, hit by writedowns after gold prices plunged.

MARKET NEWS

* The dollar was a touch firmer in Asia on Monday as the euro took a knock from more aid rumblings over Greece, while technical signals were flashing oversold after almost five weeks of losses for the U.S. currency.

(Reporting by A. Ananthalakshmi)