* Gold fall further, safety bid unwinds as equities rise
* Silver pulls further off 2-1/2 year peaks
* Precious metals ease on improved U.S. jobs, trade data
(Recasts, updates prices, market activity; adds second byline,
dateline, previously LONDON)
By Carole Vaporean and Amanda Cooper
NEW YORK/LONDON, Sept 9 (Reuters) - Gold prices swooned
further in late trading on Thursday, adding to losses in light
volume as some investors unwound safe-haven trades, setting off
automatic sell orders on the way down.
Earlier, gold prices came off modestly when U.S. weekly
filings for unemployment benefits fell by more than forecast
and the U.S. international trade gap shrank by more than
anticipated, but losses were limited.
Spot gold <XAU=> was bid at $1,248.10 an ounce at 1:46 p.m.
EDT (1746 GMT), down from $1,254.50 late in New York on
Wednesday, after it attempted to shoot for June's record high
at $1,264.90 an ounce.
U.S. gold futures for December delivery <GCZ0> were last
$8.0 lower at $1,249.50 an ounce.
Silver <XAG=> slipped to $19.81 an ounce, against $19.88 on
Wednesday when it hit its highest level since early 2008 as
investors sought a cheaper alternative to gold.
U.S equities edged higher as the jobs and trade deficit
data boosted fragile investor optimism about the economy. []
U.S. weekly initial jobless claims fell to a two-month low
last week, while the trade deficit narrowed by more than
expected in July. []
Gold "got a bit of a lift from concern over sovereign debt
and European banks earlier in the week, but that has faded and
it's tough ... to find a near-term catalyst to keep propelling
the market higher and probably one of the reasons that we
haven't hit new highs," said James Steel, an analyst for HSBC
in New York.
GROWTH RISK
Gold has risen 15 percent in 2010 as economic uncertainty
has spurred investment in perceived safe-haven assets. Analysts
said investors remain uneasy about the global economy, so gold
looks unlikely to shed its safe-haven appeal 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.
Gold hit its high in June as concern over the impact of the
European sovereign debt crisis and as 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 the world's fifth-largest
producer this year from fourth in 2009, according to Reuters
data.
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 $1,551.50 an ounce,
compared with $1,554.00 the day before, while palladium <XPD=>
was at $521.0 compared with $522.00 on Wednesday.
(Additional reporting by Pratima Desai; Editing by David
Gregorio)
