* Oil prices come off 2009 highs as equities retreat
* Gold buying picks up in India for Dhanteras festival
(Releads, updates prices, adds comment)
By Jan Harvey
LONDON, Oct 15 (Reuters) - Gold fell on Thursday after the
dollar trimmed losses following U.S. data that boosted prospects
the economy may be recovering, and stock markets eased after
earnings results from banks Goldman Sachs and Citigroup.
A correction in stocks could boost dollar buying if risk
aversion rises, analysts say, weighing on gold.
Spot gold <XAU=> fell as low as $1,046.20 and was bid at
$1,054.90 an ounce at 1454 GMT against $1,061.90 late in New
York on Wednesday.
"We've seen the dollar bounce back today, which is why we've
seen this consolidation," said Andrey Kryuchenkov, an analyst at
VTB Capital.
"I don't see at this point in time that the gains in gold
are justified. You have massive speculative exposure... and this
money can't keep coming forever."
The metal had already fallen in earlier trade as investors
cashed in gains on concerns a rally that took the precious metal
to a record $1,070.40 in the last session was overdone.
The dollar index <.DXY> clawed back from the 14-month lows
it hit in early trade after U.S. data boosted recovery hopes.
[]
Data showed the number of workers filing new claims for
jobless insurance hit a nine-month low last week, while a gauge
of manufacturing in New York state jumped unexpectedly this
month to its highest in five years. []
A firmer dollar tends to pressure gold, as it curbs the
metal's appeal as an alternative asset and makes it more
expensive for holders of other currencies.
European shares pared gains after earlier hitting a one-year
high for a second straight session and U.S. stocks fell after
results from Goldman Sachs <GS.N> and Citigroup <C.N>
disappointed. []
Oil prices retreated as shares faltered, after earlier
hitting a year-high of $75.96 a barrel after U.S. industry data
showed a decline in crude stockpiles. []
Appreciating oil prices, often seen as a trigger for rising
inflation, usually lift gold.
INDIAN DEMAND PICKS UP
Physical demand for gold picked up in India for the
Dhanteras festival, typically an auspicious time for gold
buying, as prices softened. India was the world's biggest gold
consumer last year. []
But while demand is higher than in recent weeks, it is down
on a year ago, dealers said. Demand for gold exchange-traded
funds was soft, with holdings of the largest, New York's SPDR
Gold Trust <GLD>, unchanged for a fifth session on Wednesday.
The support lent to gold prices by speculation in New York
gold futures, as opposed to underlying physical demand
suggests a period of consolidation may be due, analysts said.
"In view of the large amount of speculative net-long
positions, the risk of a correction is increasing," said
Commerzbank in a note. "Notably, the price gains of the past few
days were not accompanied by meaningful inflows into gold ETFs."
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange fell $8.20 to
$1,056.50 an ounce.
Among other precious metals, silver <XAG=> was at $17.59 an
ounce against $17.85, tracking the correction in gold, while
palladium <XPD=> was at $325.50 against $326.50.
Platinum <XPT=> was at $1,348 an ounce against $1,358,
having hit a 13-month high of $1,362.50 an ounce on Wednesday.
"Platinum is holding onto its gains to new highs," said
technical analysts at Barclays Capital in a note. "Such price
action is encouraging for further gains into the $1,400 area."
(Editing by Sue Thomas)
