* Gold dips below $950, pressured by firm equities
* Latest N.Korea missile launch fails to budge gold
* Eyes on GM's fate, due to its impact on equities
* SPDR gold ETF <XAUEXT-NYS-TT> holdings unchanged
By Miho Yoshikawa
TOKYO, May 27 (Reuters) - Gold inched down on Wednesday to
slip below $950 as firm stock markets continued to dull some of
bullion's sheen, although traders kept a cautious eye on the
fate of General Motors Corp, for its impact on equities.
Bullion was trading largely within Wednesday's ranges, when
a stronger dollar and a rally on Wall Street -- which both
benefited from a jump in U.S. consumer confidence -- spurred
selling of gold.
Gold <XAU=> was at $947.60 an ounce by 0242 GMT, down 0.4
percent from New York's notional close of $951.25.
U.S. gold futures for June delivery <GCM9> were at $948.6
per ounce, down 0.5 percent from its settlement.
North Korea appeared to have fired a third short-range
missile late on Tuesday, the South's Yonhap news agency
reported quoting an unnamed government source. []
The news, which came on the heels of the launch of two
other missiles on Tuesday, failed to support gold despite the
precious metal's traditional appeal in times of geopolitical
tension.
"I think many see this as having limited regional impact,
and it hasn't affected gold," said Shuji Sugata, a manager at
Mitsubishi Corp Futures & Securities.
He said that much of gold's recent moves could also be
attributed to end-month position adjustments.
Sugata said that of more pressing interest to investors was
the future of General Motors <GM.N>, which has until a June 1
government-set deadline to prove its viability or face
bankruptcy.
The news could cause turmoil in stock markets, which could
benefit gold as an alternative asset.
General Motors has failed to persuade enough bondholders to
accept a debt-for-equity swap, setting the stage for the
largest-ever U.S. industrial bankruptcy within days.
[]
"I think the market's hovering around current levels
because its waiting to see how the GM story unfolds," Sugata
said.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings stood at 1,118.76 tonnes
as of May 26, unchanged from the previous business day.
[]
The first notable rise in ETFs in recent months reported
recently was seen as indicating a return in investment
interest.
Latest economic data from Japan reinforced market views
that the worst of the global slump in trade may be over, with
exports rising for a second month in April compared to the
previous month. []
In industry news, Goldcorp's <G.TO> CEO said on Tuesday the
company should benefit this year from a continuing reduction in
costs combined with a return of prices to record high levels.
[]
Precious metals prices at 0240 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 947.80 -3.45 -0.36 7.69
Spot Silver 14.49 -0.06 -0.41 28.00
Spot Platinum 1132.50 0.50 +0.04 21.51
Spot Palladium 228.00 -1.00 -0.44 23.58
TOCOM Gold 2917.00 0.00 +0.00 13.37
24212
TOCOM Platinum 3500.00 -4.00 -0.11 31.98
7264
TOCOM Silver 442.40 -1.10 -0.25 38.55
113
TOCOM Palladium 715.00 -5.00 -0.69 30.00
82
Euro/Dollar 1.3954
Dollar/Yen 95.35
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Miho Yoshikawa; Editing by Clarence Fernandez)
