* Risk aversion pressures stocks, lifts dollar
* SPDR gold ETF holdings hit another record high
* Traders eye jobs data later in the week
(Updates prices, adds comment)
By Jan Harvey
LONDON, June 2 (Reuters) - Gold held above $1,220 an ounce
in Europe on Wednesday, consolidating after the previous
session's gains, with a rise in risk aversion underpinning
demand for the metal as a safe haven.
The dollar strengthened and equity markets slipped as
persistent fears the euro zone's debt crisis could hamper the
wider economic recovery continued to pressure assets seen as
higher risk.
Spot gold <XAU=> was bid at $1,220.55 an ounce at 1208 GMT,
against $1,224.30 late in New York on Tuesday. U.S. gold futures
for June delivery <GCM0> on the COMEX division of the New York
Mercantile Exchange eased $4.50 to $1,220.30 an ounce.
"Things are definitely pointing to high risk aversion at the
moment," said Commerzbank analyst Eugen Weinberg. "There is an
uneasy feeling on the markets, and risk assets like industrial
metals are being depressed by this."
He said a rise in gold coin sales by the U.S. Mint in May to
their highest level since 1999 pointed to elevated risk aversion
among private investors. []
Holdings of the world's largest gold-backed exchange-traded
fund, New York's SPDR Gold Trust <GLD>, also rose 0.3 tonnes to
a record 1,268.234 tonnes on Tuesday. []
The euro <EUR=> stayed under pressure amid concern over the
indebtedness of some euro zone states, unable to sustain a move
higher made after some of the world's major central bankers said
they would not stop investing in the single currency. []
Iran's state-owned Press TV said the Iranian central bank
would sell 45 billion euros from its foreign exchange reserves
to buy dollars and gold. []
Usually a weaker euro would weigh on gold, but the precious
metal has given up its usual strong negative correlation with
the U.S. dollar as both assets benefit from risk aversion.
"Many of the current market conditions for gold closely
resemble those of Q1 2009 -- elevated coin and bar demand,
stellar ETF creations, increased Comex positioning and a
positive correlation with the U.S. dollar index," said UBS
analyst Edel Tully in a note.
"The gold/dollar correlation has turned positive for the
first time since May 2009."
EQUITY MARKETS FALL
Equity markets fell in Europe, meanwhile, with banks under
pressure and BP <BP.L> down after the United States launched a
criminal probe into the Gulf of Mexico disaster. []
"The month of May and start of June has seen gold's safe
haven properties realised and its inverse correlation with
equities has again been clearly shown," said gold dealer
Goldcore in a note.
The financial markets are awaiting U.S. jobs data due later
in the week, culminating in May's key non-farm payrolls number
on Friday, for clues as to the next direction of trade.
Among other precious metals, platinum <XPT=> was at
$1,540.50 an ounce against $1,545, while palladium <XPD=> was at
$447 against $454.50, declining amid concern over the demand
outlook for industrial metals.
Platinum group metals traders are currently awaiting car
sales data from the U.S., China and Europe. The PGMs were
supported early in the year by strong investment demand, but
there are signs this is plateauing.
Data showed holdings of the U.S. platinum exchange-traded
product operated by a unit of ETF Securities fell in May for the
first calendar month since their January launch, declining to
334,249 ounces from 349,425 ounces at the end of April.
Elsewhere spot silver <XAG=> was flat at $18.37.
(Editing by James Jukwey)
