* Gold breaks through $955/oz, hits highest since June 12
* SPDR, ETF Securities gold ETFs see outflow on Wednesday
(Releads, updates prices)
By Jan Harvey
LONDON, July 23 (Reuters) - Gold rose to a six-week high in
Europe on Thursday as dollar weakness boosted interest in other
hard assets, including bullion, before easing below $955 an
ounce as the U.S. currency lifted from lows versus the euro.
The market shrugged off a second daily outflow from the
world's largest gold ETF, New York's SPDR Gold Trust <GLD>, and
ETF Securities' smaller London-based gold fund, as interest
shifted to other products, analysts said. []
Spot gold <XAU=> was bid at $952.40 an ounce at 1109 GMT,
against $950.40 an ounce late in New York on Wednesday. Earlier
it hit a peak of $956.50 an ounce, its highest since June 12.
"Prices remain well supported above the $950 an ounce mark,
largely on the back of the weaker dollar," said Calyon metals
analyst Robin Bhar.
"It may be that outflows from things like the ETFs or the
retail base are being offset by more buying of OTC- or
futures-based (products)," he added.
The dollar edged close to a seven-week low against the euro
and a basket of currencies as early gains on the European stock
markets suggested risk appetite was strong. It later pared
losses, however, as European stocks turned lower. []
Oil eased below $65 a barrel. [] []
World stocks earlier climbed near a nine-month high as
forecast-beating earnings reports from the likes of Credit
Suisse <CSGN.VX> fuelled interest in assets seen as higher risk,
such as equities, commodities and certain higher-yielding
currencies. []
JEWELLERY LANGUISHES
In addition to ETF outflows, jewellery demand stayed weak.
Indian buyers stayed away from the market as the weak dollar
pushed local prices towards 15,000 rupees per ten grams.
[]
Buying in the world's biggest bullion market is unlikely to
pick up until the end of August, traders said, when dealers will
replenish stock for the festival season.
On the supply side, Newmont Mining <NEM.N>, the world's
second largest gold producer, released second-quarter results.
[]
Among other precious metals, silver <XAG=> was at $13.74 an
ounce against $13.68. In investment news, the ETFS Silver Trust
said it has issued shares backed by physical silver <SIVR> to be
traded on the New York Stock Exchange. []
Platinum <XPT=> was at $1,172.50 an ounce against $1,172,
while palladium <XPD=> was at $254 against $252.50.
Lonmin <LMI.L>, the world's number three platinum producer,
said its full-year sales will miss its target, but said it was
on track to deliver lower costs. Third quarter production eased
1 percent to 178,494 ounces. []
In South Africa, source of four out of five ounces of the
world's platinum and the third largest gold producer, protests
over jobs and services spread on Wednesday, with police firing
tear gas and rubber bullets at protestors. []
Trade unions have been threatening industrial action at
platinum and gold producers in a bid to improve working
conditions.
(Reporting by Jan Harvey; Editing by Peter Blackburn)
