* Gold hits 12-day high on European, China economic concern * Technical point to more gains, closing gap on record * Coming Up: * German April retail sales; 0600 GMT * Euro zone May manufacturing PMI; 0753 GMT (Adds details, quotes, updates prices) By James Regan SYDNEY, June 1 (Reuters) - Gold climbed to its highest in almost two weeks on Tuesday after warnings from the European Central Bank and China over the global economic outlook sparked fresh safe-haven buying. Reuters' technical analysis suggests gold could advance a further $6-$7 to trade closer to its May 14 record of $1,248.95 an ounce as upside momentum builds. [TECH/C] For a graphic of the gold technical outlook, click: here Gold traded at its highest since May 19, up after news that China's official purchasing managers' index (PMI) fell to 53.9 in May from 55.7 in April, just under analysts' forecasts of 54.0. [ID:nTOE65000V] The decline was enough to turn more investment to bullion despite the data showing that for the 15th straight month, the official PMI stood above the threshold of 50 that demarcates expansion from contraction. "Since the start of the problems in Greece and Spain, gold's become ultra-sensitive to unfavourable economic news," a metals dealer in Sydney said."This should keep up the support today." Another dealer said gold's fresh surge could bump up already record-high exchange-traded gold-backed securities, once the United States and Britain return from a three-day weekend later on Tuesday. Data from the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust (GLD), shows its holdings unchanged at a record 1,267.930 tonnes as of May 28. [GOL/SPDR]. Spot gold XAU= climbed $8 to $1,222.20 an ounce versus the last notional close, the highest price since May 19, according to Reuters data before recoiling slightly. At 0412 GMT, gold stood at $1,219.40 an ounce. U.S. gold futures for August delivery GCQ0 were up $6.70 at $1,221.70 an ounce from the previous day. The European Central Bank warned Monday that euro zone banks face potential loan losses of up to 195 billion euros over the next 18 months due to the financial crisis, and disclosed it had increased purchases of euro zone government bonds. [ID:nLDE64U0OS]. The warnings came after China had cautioned that the global economy remained vulnerable to sovereign debt risks. Also, despite Monday's market holidays in the United States and Britain, bullion found some added support as it became evident that global market turbulence over the euro zone debt crisis had hit Argentine bond prices, which fell 5.4 percent on average in May [ID:nnN31256828] The U.S. dollar was steady in thin trade on Tuesday, while oil edged higher, running contrary to weaker Asian equities. Silver XAG= and platinum XPT= were modestly higher, while palladium XPD= slipped in light volumes. Precious metals prices Metal Last Change Pct chg YTD pct chg Turnover Spot Gold 1220.30 6.10 +0.50 11.37 Spot Silver 18.52 0.03 +0.16 10.04 Spot Platinum 1562.50 4.00 +0.26 6.51 Spot Palladium 462.75 -2.35 -0.51 14.12 TOCOM Gold 3582.00 5.00 +0.14 9.91 19431 TOCOM Platinum 4602.00 -9.00 -0.20 4.95 9183 TOCOM Silver 54.90 0.30 +0.55 6.19 431 TOCOM Palladium 1363.00 -2.00 -0.15 17.00 334 Euro/Dollar 1.2255 Dollar/Yen 91.00 TOCOM prices in yen per gram, except TOCOM silver which is priced in yen per 10 grams. Spot prices in $ per ounce.

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