PRECIOUS-Gold jumps 1% as Mideast tensions spur safe-haven bid

* Minutes of Fed's Dec. 10-11 policy meeting due at 1900 GMT
* SPDR Gold holdings rise to highest since Nov. 29
* Dollar hits 9-week low against safe-haven yen

(Adds comments, updates prices)
By Diptendu Lahiri
Jan 3 (Reuters) - Gold prices jumped 1% to a four-month high
on Friday as tensions flared in the Middle East after a senior
Iranian military official was killed in a U.S. air strike,
sparking safe-haven bids.
Iranian Major-General Qassem Soleimani, head of the elite
Quds Force, and top Iraqi militia commander Abu Mahdi
al-Muhandis were killed in the air strike on their convoy at
Baghdad airport. "News from the Middle East along with some technical buying
and a weaker dollar is supporting gold prices today," said
Benjamin Lu, analyst at Phillip Futures.
Spot gold XAU= hit its highest since Sept. 5 at $1,543.66,
and was up 0.8% at $1,540.80 per ounce by 0733 GMT. U.S. gold
futures GCv1 gained about 1% to $1,543.30 per ounce.
For the week, spot gold has gained about 2%, heading for a
fourth consecutive weekly increase.
Gold is considered to be a safe investment in times of
political and economic uncertainties.
Supporting the metal further, the dollar slipped to a
nine-week low against the safe-haven yen on tensions in the
Middle East. USD/
"After the recent escalations in geopolitical issues, we see
a resistance level near the $1,575 level for the next week,"
said Jigar Trivedi, a commodities analyst at Anand Rathi Shares
& Stock Brokers in Mumbai.
"In case, there is profit-booking prices may fall to the
$1,520 level but it is better to be long on gold, as there is a
lot of potential for the metal to rise further."
Asian shares slipped, erasing early gains on heightening
geopolitical tensions, and boosting the metal's appeal.
MKTS/GLOB
Investors now await the minutes of the Federal Reserve's
Dec. 10-11 policy meeting, due at 1900 GMT. Lower interest rates
reduce the opportunity cost of holding non-yielding bullion.
Indicative of investor sentiment, holdings of the world's
largest gold-backed exchange-traded fund, SPDR Gold Trust GLD ,
rose 0.23% to 895.30 tonnes on Thursday, its highest since Nov.
29. Among other precious metals, silver XAG= hit a more than
two-month high of $18.25 and was last up 0.8% at $18.17 per
ounce, while platinum XPT= rose 0.4% to $982.66, heading for
about 4% weekly gain.
Palladium XPD= climbed 0.3% to $1,964.87, on track for a
more than 3% weekly gain.