* Gold falls to session lows after U.S. data
* Silver pulls back from 2-1/2 year peaks
* ECB governing council's Ordonez speaks at 1830 GMT
(Recasts, adds comment after U.S. data)
By Amanda Cooper
LONDON, Sept 9 (Reuters) - Gold fell to session lows on
Thursday after the release of better than expected economic data
from the United States dispelled some worry about the health of
the world's largest economy.
Spot gold <XAU=> was bid at $1,253.05 a troy ounce at 1317
GMT from $1,254.50 late in New York on Wednesday. Earlier it
fell to $1,250.30 an ounce.
U.S. gold futures for December delivery <GCZ0> were last
down $3.0 at $1,255.00 an ounce.
Losses were triggered by new U.S. claims for unemployment
benefits, which fell more than expected last week, and by a
narrowing U.S. trade deficit in July. []
"U.S. jobless claims fell, which is good news, and gold
likes bad news," said David Wilson, analyst at Societe Generale.
However, the risk of slower global growth is still there in
the background and analysts said gold looked unlikely to shed
its appeal as a safe-haven investment any time soon.
"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 an all-time high at $1,264.90 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.
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. []
"Sentiment is waning and rising, it's like a tide," a trader
said. "I'm not sure where it's going to end, guess we need to
see a few more data points."
In fundamental news for gold, the South African statistics
office said gold output fell 3.4 percent in volume terms, while
total mineral production fell 1.0 percent in July. []
Gold output has been dwindling in South Africa, which is
expected to drop in the rankings to be the world's fifth-largest
producer this year, from fourth last year, according to Reuters
data.
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 bid at $19.93 an
ounce, against $19.88 on Wednesday when it hit its highest level
since early 2008, as investors sought a cheaper safe-haven
alternative to gold.
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 $1,548.00 an ounce,
compared with $1,554.00 the day before, while palladium <XPD=>
was at $523.50 compared with $522.00 on Wednesday.
(Additional reporting by Pratima Desai and Lewa Pardomuan,
editing by James Jukwey)
