* Gold steadies, likely to test new highs
* Silver pulls back from 2-1/2 year peaks
* Coming Up: U.S. initial weekly jobless claims; 1230 GMT
(Updates throughout with comment, prices; changes byline and
dateline, pvs SINGAPORE)
By Amanda Cooper
LONDON, Sept 9 (Reuters) - Gold steadied within sight of
record highs on Thursday as equity markets stabilised and the
euro rose, encouraging investors to delve back into riskier
assets.
The more upbeat mood was not apparent across all markets.
German Bund prices rose after a European Central Bank official
said economic growth would struggle once monetary stimulus
measures had run their course. []
With this stark reminder of the risk of slower global growth
in mind, analysts said gold looked unlikely to shed its appeal
as a safe-haven investment any time soon.
Spot gold <XAU=> was last at $1,255.05 an ounce at 0905 GMT,
compared with $1,254.50 late in New York on Wednesday. Prices
hit an intraday high of $1,262.25 the day before, just shy of
late June's all-time high at $1,264.90.
U.S. gold futures for December delivery <GCZ0> were last
down 0.60 cents at $1,256.90 an ounce.
"We are still in a situation where confidence ebbs and flows
pretty rapidly from day to day, and sometimes from hour to hour,
and morning to afternoon as the data comes in and changes
people's opinions," said Credit Suisse analyst Tom Kendall.
"The rally has done a lot, and it is looking a little tired
right now, so we wouldn't be surprised to see it consolidate, or
come off a bit before trying again," he said, adding gold was
likely to trade through $1,300 through the end of this year.
MORE HIGHS POSSIBLE
Gold hit a record high in June as concern over the impact of
the European sovereign debt crisis and the resilience of the
U.S. economic recovery came into question, triggering a wave of
demand for gold as a form of protection against volatility in
the wider financial markets.
The U.S. economy has shown "widespread signs" of slowing
over recent weeks, the Federal Reserve said on Wednesday in a
report, suggesting that while the recovery has been faltering,
the economy may skirt a second recession. []
"I think sentiment is still bullish right now," said Dick
Poon, manager at Heraeus in Hong Kong. "The market is only
consolidating." He said gold was still on track for new highs.
Dealers ignored declines in Chinese commodity futures,
saying that bullion was partly driven by wild movements on the
Tokyo Commodity Exchange, especially during the morning session.
<0#JAU:>. The most active contract on the Shanghai Gold Exchange
<0#SHAU:> was barely changed.
Chinese commodity futures prices slid on Thursday in a
widespread sell-off that several market participants linked to
an investigation into trading on the Shanghai rubber market.
Local gold dealers in Singapore reported a steady flow of
two-way business from Vietnam and Thailand, as well as an uptick
in demand from top consumer India on Wednesday.
Consumption in India rises during the festive season,
beginning with Raksha Bandhan in August and lasting through
November, with Dhanteras on Nov. 3 the single biggest
gold-buying day.
In other precious metals, silver <XAG=> was last at $19.86
an ounce, against $19.88 the day before when it hit its highest
level since early 2008, as investors sought a cheaper safe-haven
alternative to gold.
The gold/silver ratio -- the number of ounces of silver
needed to buy one ounce of gold -- was at 63.19, close to its
lowest since early April.
In the platinum group metals, traders kept an eye on
developments at South African miner Northam Platinum, where
union members are currently on strike and say action may
continue for months.
Platinum <XPT=> was last quoted at $1,549.73 an ounce,
compared with $1,554.00 the day before, while palladium <XPD=>
was at $519.75 compared with $522.00.
(Additional reporting by Lewa Pardomuan in Singapore,
editing by Jane Baird)
