* SPDR gold ETF <XAUEXT-NYS-TT> gains, 1st time in a month
* Dlr broadly firmer but U.S. data hints at lasting downturn
(Recasts lead, adds detail/comment)
By Humeyra Pamuk and Pratima Desai
LONDON, May 14 (Reuters) - Gold tracked back from its lows
on Thursday as the dollar retreated from earlier highs, with
worse-than-expected U.S. macro data and weaker European equity
markets fuelling doubts a recent winning streak was sustainable.
Higher-than-expected U.S. jobless claims and producer prices
data helped precious metals erase larger losses from earlier in
the day. []
This followed a fall in U.S. retail sales data on Wednesday,
which dented sentiment that had boosted equity and commodity
markets and signalled the economy's troubles were far from over.
Spot gold <XAU=> was at $925.55 per ounce at 1407 GMT, from
$925.45 late in New York on Wednesday, when it touched a
six-week high on buying by gold-backed exchange-traded funds.
"The jobs data is worse than forecast," said James Moore, an
analyst at The Bullion Desk.com. "It's a bit of a reality check
that maybe the recession in the U.S. is going to take longer to
crawl out of and the markets have got a little bit ahead of
themselves."
U.S. gold futures for June delivery <GCM9> on the COMEX
division of the New York Mercantile Exchange were up 10 cents to
$926.00 an ounce.
European shares extended losses on Thursday after the
jobless claims, though they later flattened out []. Losses on
the equity markets have benefited gold in recent months, as
investors buy bullion as a haven from risk in other markets.
"We think equity markets have overcooked the upturn," said
Michael Lewis, global head of commodities research at Deutsche
Bank.
The dollar gave up gains after drifting higher against the
euro following the weak U.S. retail data, which kept risk
aversion high. []
Gold typically moves in the opposite direction to the U.S.
currency, to which it is often bought as an alternative
investment. However, the usual relationship between the two has
recently weakened, as both react to risk aversion.
BULLISH
With the world economy not out of the woods yet, analysts
saw higher price prospects for gold.
"We're bullish for the next couple of months. We feel that
these reflationary trades...are now going to be under attack and
those sorts of environments do tend to see flows into gold
ETFs," Lewis said, referring to recent gains in copper and oil
prices.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, earlier said holdings had risen to
1,105.62 tonnes as of May 13, up 1.53 tonnes from the previous
business day for the first gain in a month. []
"The inflow is still marginal relative to the massive gold
inflows seen in the first quarter this year," analysts at
Commerzbank said in a research note. "In this context, we view
the upward potential for gold as limited at present."
Platinum <XPT=> was at $1,107.50 an ounce from $1,111.00
while silver <XAG=> was at $13.89 from $13.94 and palladium
<XPD=> was at $222.50 against $220.50.
(Reporting by Michael Taylor; additional reporting by
Maytaal Angel; editing by Keiron Henderson)
