PRECIOUS-Gold hits fresh 2-month peak; econ worries support

* Gold ticks to fresh 2-month high at $1,250.35/oz

* Doubt on economic recovery remains; ETF holdings up

* Golden cross technical formation suggests more gains

* Coming up: U.S. ISM Manufacturing PMI August; 1400 GMT (Recasts, updates prices)

By Rujun Shen and Jacqueline Wong

SHANGHAI, Sept 1 (Reuters) - Gold prices touched a fresh two-month peak on Wednesday on persistent worries of a downturn in the United States and strong demand for gold-backed exchange- traded products.

Spot gold prices <XAU=> rose 56 cents $1,249.55 an ounce by 0654 GMT, having touched a two-month peak of $1,250.55 shortly before.

Holdings in the SPDR Gold Trust <GLD.P>, rose 3.952 tonnes to 1,302.508 tonnes on Aug. 31, from 1,298.556 tonnes on Aug. 27.

"Investors are reluctant to exit their long gold positions, as shown in the ETF numbers. At the same time, the market seems very much focusing more on negative data than the positive," said Darren Heathcote, head of trading at Investect Australia in Sydney.

Gold prices are expected to continue to rise, with the next target seen at $1,300 once this year's record high at $1,264.90 is taken out.

"Gold is taking time to consolidate," said Dick Poon, manager of precious metals at Hareaus in Hong Kong. "Even if it dropped $20 to $30, it would still be healthy. It's likely to test $1,300 before the year end."

The 30-day moving average, at $1,208.07, was close to crossing above the 50-day moving average at $1,209.06, creating a golden cross, suggesting another bout of strength.

Data showed modest growth in U.S. consumer confidence in August and better-than-expected June home prices, but not enough on its own to dispel worries of a "double-dip" in the world's largest economy and prompt relief selling of bullion. [ID:nN31237504]

But gains in equities might be enough to tempt some investors to sell down their bullion holdings.

"I think there is scope for it to retrace a little if we get positive on the stock market tonight," said Heathcote of Investec.

Asian stocks rose on Wednesday, encouraged by a manufacturing rebound in China and stronger-than-expected growth in Australia. [MKTS/GLOB]

The official purchasing managers' index (PMI) of China in August moved up one notch from the previous month, after three months of slowing growth. [ID:nTOE68001O]

The uncertainties in the economic outlook helped propel gold to its biggest monthly rise since last November in August. And some expected gold prices to further benefit from the worries over recovery especially in the U.S. and Europe.

However, a researcher from China's central bank warned gold investors and told them to be alert to possible gold price plunges as a result of selling from overseas central banks. [ID:nTOE67U09P] Precious metals prices at 0654 GMT Metal Last Change Pct chg YTD pct chg Turnover Spot Gold 1249.55 0.56 +0.04 14.04 Spot Silver 19.36 0.02 +0.10 15.03 Spot Platinum 1521.05 4.65 +0.31 3.68 Spot Palladium 503.50 6.80 +1.37 24.17 TOCOM Gold 3400.00 54.00 +1.61 4.33 39158 TOCOM Platinum 4155.00 41.00 +1.00 -5.16 16171 TOCOM Silver 53.10 1.60 +3.11 2.71 486 TOCOM Palladium 1368.00 38.00 +2.86 17.42 176 Euro/Dollar 1.2721 Dollar/Yen 84.28 TOCOM prices in yen per gram. Spot prices in $ per ounce. (Additional reporting by Nick Trevethan)