PRECIOUS-Gold gains on global growth woes; palladium sets record on supply concerns

* Palladium surges to $1,664.50/oz
* French, German and euro zone PMIs weaker-than-expected

(Updates prices)
By Brijesh Patel
Sept 23 (Reuters) - Gold rose to a more than one-week high
on Monday as weaker-than-expected economic data from Europe
heightened fears of a slowdown in global growth, while palladium
continued its record run driven by short supply of the
auto-catalyst metal.
Spot gold XAU= was up 0.2% at $1,519.13 per ounce as of
1254 GMT, after hitting its highest since Sept. 12.
U.S. gold futures GCcv1 rose 0.7% to $1,526.30 an ounce.
"We have to acknowledge that these global growth worries are
still there ... the German data and data from Europe were weaker
than expected. So ... we're seeing fundamental support for
gold," Julius Baer analyst Carsten Menke said.
Gold is likely to trade higher near term with more monetary
easing by the world's central banks and trade issues between the
United States and China still on the table, he added.
German private sector activity shrank for the first time in
6-1/2 years in September, while euro zone business growth
stalled this month, a survey showed. The weaker-than-expected economic readings added to investor
worries over the effect of the U.S.-China trade dispute on the
world economy, denting appetite for riskier assets. MKTS/GLOB
Over the weekend, the U.S. Trade Representative's office
issued a statement characterising two days of talks with China
as "productive". This comes after Chinese officials unexpectedly cancelled a
visit to U.S. farms following their negotiations in Washington.
Adding to global geopolitical risks, tensions remained
elevated in the Middle East after Washington ordered more troops
to the Gulf region to strengthen Saudi Arabia's air and missile
defences, following an attack on the kingdom's oil facilities.
Meanwhile, palladium surged to a all-time high of $1,664.50
an ounce.
"There seems to be a shortage of material ... the forwards
are tightening as well and there is good demand that cannot be
met at the movement," said Afshin Nabavi, senior vice president
at precious metals trader MKS SA.
Palladium has risen more than 8% or about $125 so far this
month.
"Healthy demand, constrained supply and challenging
liquidity conditions are likely driving prices higher," UBS
strategist Joni Teves wrote in a note.
She added that a breakdown in U.S.-China trade talks, a
deterioration in economic data and a pullback in equities from
recent highs presented downside risks for palladium over the
remainder of the year.
Silver XAG= gained 2.3% to $18.39 per ounce and platinum
XPT= jumped nearly 1.2% to $956.64.