* Dollar eases as risk appetite revives, lifting gold
* SPDR ETF holdings down more than 4 percent in 4 weeks
* Investors eye U.S. job date due later
(Updates prices, adds details)
By Jan Harvey and Martina Fuchs
LONDON, July 30 (Reuters) - Gold firmed on Thursday as the
dollar fell versus a basket of currencies, with rebounding stock
markets boosting appetite for assets seen as higher risk.
Traders are eyeing U.S. weekly jobs data due at 1230 GMT for
clues as to the next direction of trade, and U.S. second-quarter
U.S. GDP data due tomorrow.
Spot gold <XAU=> was bid at $932.15 an ounce at 1205 GMT,
against $929.00 an ounce late in New York on Wednesday. U.S.
gold futures for August delivery <GCQ9> on the COMEX division of
the New York Mercantile Exchange rose $4.90 to $932.10 an ounce.
Analysts said traders would be focusing on U.S. weekly
jobless claims data due later. "What could really move (gold)
are jobless claims," said CMC Markets strategist Ashraf Laidi.
"If this is welcomed by the equities market and triggers a
fresh boost, that could benefit gold," he said. "What could drag
gold lower is really disappointing jobless numbers, and more
violent declines in equities."
The dollar fell versus the euro and against a basket of
currencies after a bounce in stock markets and fresh European
data showing an improvement in euro zone sentiment in July
boosted appetite for currencies seen as riskier. []
European shares rose as investors digested a raft of broadly
positive earnings in the telecom sector, while U.S. stock
futures climbed. [] []
Oil was also boosted by stock markets and rose above $64 a
barrel. Firmer crude prices can support gold, which can be used
as a hedge against oil-led inflation. []
DEMAND RECOVERS
Gold demand in India, the world's biggest bullion consumer,
is recovering after recent price falls, but a further decline
will be needed for buying to significantly recover.
"There are advance orders in decent quantities in the range
of $900-920 an ounce," said one dealer with a state-run bank.
Overall demand in India remains weak, however. The country's
gold imports have reached a provisional 8-10 tonnes in July so
far, well below the 24 tonnes recorded last June, the Bombay
Bullion Association said. []
Investment demand for gold remained soft, however, as ETF
holdings slipped further. Holdings of the largest bullion ETF,
the SPDR Gold Trust <GLD>, fell over 10 tonnes on Wednesday, and
are down nearly 48 tonnes in the last four weeks. []
Jason Toussaint, managing director for exchange-traded gold
with the World Gold Council, said there was evidence investors
were selling out of the SPDR fund to raise liquidity to buy
shares.
Analysts fear a broader liquidation of ETF gold holdings
resulting from a recovery in risk appetite could jeopardise
gold's gains.
"Without strong physical demand to absorb metal coming back
into the market and with funds cutting long exposure, the metal
is at risk of a deeper correction," said TheBullionDesk.com
analyst James Moore.
Among other precious metals, silver <XAG=> tracked gold up
to $13.39 an ounce against $13.28. Spot platinum <XPT=> was at
$1,175.50 an ounce against $1,170, while palladium <XPD=> was at
$255.50 against $254.50.
(Additional reporting by Lewa Pardomuan in Singapore;
Editing by Sue Thomas)
