Gold off 11-month high after China fall

LONDON, Apr 19 (Reuters) Gold fell from a new 11-month high on Thursday after Chinese stocks plunged on fears the country's economy was overheating, analysts said.

Spot gold rose as high as $691.50 per ounce, beating an 11-month high of $691 on April 16, but slipped after 4 percent was wiped off Chinese stocks as markets worried new inflation data would prompt the central bank to raise interest rates.

''This spread over to other Asian and also the European stock market. Unwinding of yen carry trades and increased investor risk perception is back on the agenda,'' Dresdner Kleinwort said in a market report.

''Gold is a risky asset and is under pressure as in late February,'' the bank said.

Gold was quoted at $686.30/686.80 at 0951 GMT, down from $689.20/689.70 late in New York on Wednesday.

Technically, it was supported at around $683, Societe Generale analysts said.

Bullish technicals have prompted solid buying from investment funds since the start of the second quarter, lifting the spot price by more than 5 percent since April.

Platinum traded up to $1,300 per ounce, its highest since November last year, on expectations of investment demand after news of the planned launch of new exchange-traded funds (ETFs).

On Thursday, EFT Securities said it intended to launch precious metals contracts on April 24, while Switzerland's Zurich Cantonal Bank earlier said it planned to launch ETFs in platinum, palladium and silver by next month.

At 1006 GMT platinum was quoted at $1,297/1,302, up from $1,290/1,295 in New York on Wednesday.

Palladium edged up to $378/382 an ounce from $376/381 in New York.

Silver fell to $13.86/13.89 an ounce from $13.98/14.01 late in New York.

REUTERS SR KP2048