Gold extended gains and rose to its strongest in a week on Wednesday as investors shifted out of equities after poor U.S. data sparked concerns about the health of the global economy.

FUNDAMENTALS

* Spot gold rose $5.10 to $1,190.45 an ounce by 0100 GMT. Bullion was still around 6 percent below a lifetime high of $1,264.90 struck in June.

* U.S. gold futures for December delivery rose $5.3 an ounce to $1,192.8 an ounce.

* China will allow more domestic banks to export and import gold as part of steps to encourage more liquid trade, which could underpin the country's growing private demand for the precious metal.

* Purchases from jewelers and investors in China pushed up premiums for gold bars to their highest in nearly two years on Tuesday, while dealers in India enjoyed brisk sales ahead of the festive season.

* The world's largest gold-backed exchange-traded fund, SPDR Gold Trust (GLD.P), said its holdings were still unchanged at 1,282.279 tonnes. The holdings hit a record at 1,320.436 tonnes on June 29.

MARKET NEWS

* Japan's Nikkei average fell 1.1 percent on Wednesday, with exporters down on a combination of a strong yen and after U.S. stocks slipped on weaker-than-estimated data on consumer spending and housing. .T .N

* The dollar hit an eight-month low against the yen on Wednesday, extending losses as weak U.S. data and talk of further monetary policy easing by the Federal Reserve pushed down U.S. Treasury yields.

(Reporting by Lewa Pardomuan; Editing by Clarence Fernandez)

Japan China India George soros