Gold stands near 3-week highs on Iran concerns

TOKYO, Dec 29 (Reuters) Gold held near three-week highs on Friday as lingering worries over Iran led to fresh buying by investment funds, while bullish technical signs after this week's rises were also drawing buying on dips.

-- As of 0017 GMT, spot gold was little changed at $634.00/635.50 an ounce compared with late New York's $634.10/635.10.

-- On Thursday, gold peaked at $635.20 -- the highest since Dec. 8.

-- The technical trend was strong after gold clearly broke through the 30-day moving average around $629 the previous day.

Traders were watching whether cash gold could break through $640 for the first time since Dec. 6.

-- Growing uncertainty in Iran was drawing safe-haven buying, while the perception was growing that the current uptrend in gold will continue for a while.

-- On Wednesday, Iran's parliament passed a bill obliging the government to ''revise'' its level of cooperation with the IAEA nuclear watchdog after the United Nations approved sanctions on Tehran.

-- The U.N Security Council on Saturday voted unanimously to impose sanctions on Iran's trade in sensitive nuclear materials and technology in an attempt to stop uranium enrichment work that could produce material to be used in bombs.

-- Gold usually rises on geopolitical tension as precious metals are seen as safe-haven investments.

-- Japanese gold futures prices rose in line with cash gold.

-- The benchmark December 2007 contract on the Tokyo Commodity Exchange opened up 25 yen or 1 percent at 2,450 yen per gram -- the highest for a lead contract since July 20.

-- Platinum rose to $1,119/1,124 an ounce from $1,115/1,119 in New York.

-- Palladium was unchanged at $322/326 an ounce from the previous New York level.

-- Silver was little changed at $12.85/12.92 an ounce from $12.83/12.90 late in New York.

Reuters SBA VP0634