* Risk aversion abates on robust Europe, U.S. data
* Physical demand limits gold losses
* For technical outlook on gold; click on []
* Coming Up: U.S. weekly jobless claims; 1230 GMT
(Recasts, updates prices and comments, previous SINGAPORE)
By Humeyra Pamuk
LONDON, June 3 (Reuters) - Gold fell on Thursday as risk
aversion receded due to robust economic data in Europe and the
United States, but brisk physical demand limited the metal's
losses.
Spot gold <XAU=> was at $1,221.65 an ounce by 0908 GMT, down
from $1,224.30 an ounce late in New York on Wednesday and below
this week's peak around $1,230 an ounce.
The euro zone's debt problems and fears that they could
derail the region's fragile economic growth had boosted gold's
safe-haven appeal and driven it to a record high of $1,248.95 an
ounce in mid-May.
"Better macro sentiment, equity markets higher and the euro
is off its lows -- all of this is contributing to some risk
appetite coming back," said analyst Robin Bhar at Credit
Agricole. "In that sort of environment, you'd expect gold to be
slightly less attractive," he added.
The dollar fell as a rise in global share markets on the
back of strong U.S. economic data helped to cool risk aversion.
The same data gave a boost to Asian stocks, which posted their
biggest single-day gain in four weeks. []
In Europe, shares rose to a two-week high after the Markit
Eurozone Services Purchasing Managers' Index showed the services
sector expanded in May and the Final Services Employment Index
showed it first jobs growth since June 2008. []
U.S. gold futures for August delivery <GCQ0> added $2.0 an
ounce to $1,224.6. []
Investors awaited the release of U.S. payrolls data on
Friday, which is expected to show 513,000 jobs were added to the
economy in May -- a fifth straight month of gains. This could
potentially boost the dollar and weaken bullion's safe-haven
appeal. []
On Thursday, weekly jobless claims data from the United
States is due at 1230 GMT. []
ROBUST PHYSICAL DEMAND
But the underlying interest in gold remained intact, Bhar
said. "The retail appetite is definitely there...Maybe more dip
demand as prices come back."
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD.P> said its holdings rose to a record at
1,268.539 tonnes as of June 2 from 1,268.234 tonnes in the
previous business day. []
In India, the world's top physical gold market, some
jewellers stocked up as bullion prices dropped from a two-week
high, while selling from other consumers in Asia also slowed,
keeping premiums for gold bars steady. []
"I think we need some news to push up gold, otherwise we'll
get stuck in a range of $1,200 to $1,225," said a bullion dealer
in Hong Kong.
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For a graphic showing the gold technical outlook:
http://graphics.thomsonreuters.com/gfx/WT_20100306090842.jpg
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Silver <XAG=> was at $18.55 an ounce versus $18.45 an ounce.
"If risk appetite returns to financial markets in the coming
months and we see a waning of investor appetite for the precious
metals, we believe that silver will be more vulnerable to a
price correction than gold," analysts at RBS said in a note.
Spot platinum <XPT=> was at $1,557.50 an ounce versus
Wednesday's $1,545 an ounce while spot palladium <XPD=> was at
$460 an ounce from $454.50.
(Additional reporting by Lewa Pardomuan in Singapore, Editing
by Sue Thomas)
