* Risk aversion abates on robust Europe, U.S. data
* Physical demand limits gold losses
* Coming up: U.S. non-farm payrolls data on Friday
(Updates prices, adds comment)
By Humeyra Pamuk
LONDON, June 3 (Reuters) - Gold fell in Europe 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 $1,218.15 an ounce by 1322 GMT, down
from $1,224.30 an ounce late in New York on Wednesday and below
this week's peak of around $1,230 an ounce.
Fears the euro zone's debt problems could derail the
region's fragile economic growth had boosted gold's safe-haven
appeal, driving it to a record $1,248.95 an ounce in mid-May.
"The gold price seems to be losing some bullish momentum as
risk appetite cautiously returns," said Anne-Laure Tremblay, an
analyst at BNP Paribas.
"In the absence of renewed concerns, particularly as regards
to European sovereign debt, there seems to be little to drive
the price higher in the short term."
The dollar eased as a rise in global stock markets on the
back of strong U.S. economic data helped to cool risk aversion.
Global stocks rose to their highest in two weeks. []
European shares also hit a two-week high on Thursday as
positive data from the euro zone's services sector soothed
investors' worries about the region. U.S. stock index futures
pointed to a higher opening on Thursday. [] []
Investors are awaiting key U.S. payrolls data on Friday,
which is expected to show 513,000 jobs were added to the economy
in May. This could potentially boost the dollar and weaken
bullion's safe-haven appeal. []
Weekly jobless claims data released Thursday showed the
number of U.S. workers filing new claims for jobless benefits
fell last week, while private employers added jobs in May,
further evidence the labour market was improving. []
U.S. gold futures for August delivery <GCQ0> eased $3.20 an
ounce to $1,219.40. []
ROBUST PHYSICAL DEMAND
But the underlying interest in gold remained intact, said
Credit Agricole analyst Robin Bhar. "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 $18.31 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 $1,557.20 an ounce versus
Wednesday's $1,545 an ounce while spot palladium <XPD=> was at
$458.83 an ounce from $454.50.
(Additional reporting by Jan Harvey in London and Lewa
Pardomuan in Singapore, Editing by Keiron Henderson)
