* Gold extends gains, physical market subdued
* Coming Up: U.S. Core CPI mm, sa May; 1230 GMT (Updates prices)
By Lewa Pardomuan
SINGAPORE, June 15 (Reuters) - Gold rose further on Wednesday on inflation fears ignited by recent strong Chinese economic data, lingering worries over debt problems in Europe and the United States, as well as firm equities.
Although the long-term outlook remains positive, gold is still struggling to breach $1,550, a peak touched last week, while physical buying subsided after gold snapped a two-day losing streak in the previous session.
Spot gold added $1.53 an ounce to $1,524.78 an ounce by 0608 GMT, extending Tuesday's gains after data in China showed inflation was running at its fastest pace in almost three years and U.S. retail sales fell less than forecast.
Gold is well below a lifetime high around $1,575 touched in early May.
"There's not much to say. On the upside, there is still a resistance to break at around $1,550. The market may test $1,500 again if it closes below $1,512," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.
"I think the market is watching the end of QE2 this month."
Financial markets are bracing for the conclusion at the end of June of the U.S. Federal Reserve's quantitative easing, a cheap-money policy credited with boosting stocks but blamed for sky-high commodities prices and a weak dollar.
Inflation was still a concern in China, the world's second-largest economy, after consumer prices rose at their fastest pace in almost three years in May, but industrial output grew from a year ago, in line with forecasts.
"Near-term pressure will be applied by Monday's break in gold of $1,528 support and by the ongoing pricing in of economic weakness," said Tom Pawlicki, precious metals and energy analyst at MF Global.
"We don't see too much weakness still in store for gold, however, as support will be offered by the possibility that economic weakness remains simply a 'sub-par recovery', from a lack of progress on debt ceiling negotiations, safe-haven demand stemming from Greece, and from potentially higher Chinese commodity demand."
China's gold production this year is expected to rise more than 10 percent in 2011 from last year, as nagging political and economic uncertainties persist, a China Gold Association official said on Wednesday.
Fed Chairman Ben Bernanke said the United States could lose its coveted AAA credit rating and the dollar's special status as a reserve currency could be damaged if there was no quick resolution to the political battle over raising the $14.3 trillion debt limit.
In Europe, euro zone ministers failed to reach agreement on how private holders of Greek debt should share the costs of a new bailout, putting the onus on the leaders of Germany and France to forge a deal later this week.
Greece became the lowest-rated country in the world on the scale used by Standard & Poor's, which downgraded it this week to eight notches below junk status. [ID:nN13126859
Silver was steady at $35.37 an ounce, below a record at $49.51 an ounce in April.
Holdings of the largest silver-backed exchange-traded fund (ETF), New York's iShares Silver Trust , fell 0.44 percent from Monday to Tuesday, while the largest gold-backed ETF, New York's SPDR Gold Trust remained unchanged for the same period.
In other markets, the euro came under pressure as markets refocused on the euro zone's debt problems after Moody's threatened large French banks with possible downgrades, while the Nikkei ended higher on U.S. retail sales figures that were not as bad as expected.
U.S. stocks posted their biggest gains in nearly two months on Tuesday as retail sales figures allayed fears over the economy that had driven a six-week slump in the market. Precious metals prices 0608 GMT
Metal Last Change Pct chg YTD pct chg Turnover Spot Gold 1524.78 1.53 +0.10 7.42 Spot Silver 35.37 0.05 +0.14 14.61 Spot Platinum 1794.75 5.55 +0.31 1.54 Spot Palladium 793.00 2.80 +0.35 -0.81 TOCOM Gold 3953.00 12.00 +0.30 6.01 39443 TOCOM Platinum 4692.00 -18.00 -0.38 -0.09 7475 TOCOM Silver 91.50 0.60 +0.66 12.96 870 TOCOM Palladium 2061.00 -16.00 -0.77 -1.72 186 Euro/Dollar 1.4415 Dollar/Yen 80.44 TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Clarence Fernandez)