* Dollar slips as rising stock markets boost risk appetite
* U.S. new jobless claims rise slightly above forecast
* SPDR ETF holdings down more than 4 percent in 4 weeks
(Updates prices, adds details)
By Jan Harvey and Martina Fuchs
LONDON, July 30 (Reuters) - Gold rose on Thursday as the
dollar fell versus a basket of currencies, with rebounding stock
markets and U.S. jobless figures showing a decline in continuing
claims boosting appetite for assets seen as higher risk.
U.S. data showed the number of U.S. workers filing new
claims for jobless benefits rose slightly more than expected
last week, but a gauge of underlying labor trends fell for a
fifth straight week. []
Spot gold <XAU=> was bid at $933.50 an ounce at 1311 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 $6.20 to $933.40 an ounce.
"If this is welcomed by the equities market and triggers a
fresh boost, that could benefit gold," said CMC Markets
strategist Ashraf Laidi.
The dollar was down 0.39 percent at 79.3 against a basket of
currencies and was lower against the euro following the data.
Traders are now eyeing U.S. data on second-quarter GDP due on
Friday for clues as to the next direction of the economy. []
European shares rose as investors digested a raft of broadly
positive corporate earnings, while U.S. stock futures extended
gains after the jobs report. []
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. []
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 SOFT
Investment demand for gold remained soft, however, as ETF
holdings slipped further. Holdings of the largest bullion ETF,
the SPDR Gold Trust, 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 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.
On the supply side, the world's largest gold producer,
Barrick Gold <ABX.TO>, said it produced 1.87 million ounces of
gold in the second quarter and is on track to meet its 2009
output target of 7.2-7.6 million ounces. []
Among other precious metals, silver <XAG=> tracked gold up
to $13.44 an ounce against $13.28. Spot platinum <XPT=> was at
$1,177 an ounce against $1,170, while spot palladium <XPD=> was
at $255 against $252.50.
(Additional reporting by Lewa Pardomuan in Singapore;
Editing by Peter Blackburn)
