* Equities climb in Asia, Europe as risk appetite picks up
* Industrial commodities like oil, copper also benefit
* SPDR gold ETF sees fresh outflow as haven appeal wanes
(Updates, adds comment, changes dateline from SINGAPORE)
By Jan Harvey
LONDON, July 9 (Reuters) - Gold held near $1,200 an ounce on
Friday as some buyers were tempted back to the market by the
metal's fall to six-week lows as the dollar softened, but
recovering risk appetite is undermining its haven appeal.
Spot gold <XAU=> was bid at $1,197.55 an ounce at 0831 GMT,
against $1,196.48 late in New York on Thursday. U.S. gold
futures for August delivery <GCQ0> firmed $1.70 to $1,197.80.
The metal has recovered after falling to its lowest since
late May on Wednesday at just above $1,185 an ounce, but has
since struggled to make new headway.
A return in appetite for assets seen as higher risk after a
cautiously upbeat view of the euro zone's recovery from the
European Central Bank and positive U.S. data released Thursday
is limiting demand for gold as a safe haven, analysts said.
"Sentiment is certainly changing and we should see thin
trading with gold lacking clear direction unless risk aversion
returns," said VTB Capital analyst Andrey Kryuchenkov.
"The exodus is finished in the short run... but more robust
gains on equity markets could trigger a little more downside,"
he added.
European shares rose in early trade on Friday, tracking
gains on Wall Street, which itself was boosted by jobless claims
falling and a handful of large retailers reporting solid sales.
Asian shares overnight posted gains. []
On the currency markets, the euro hit a two-month high
against the dollar and rose broadly on Friday as improving risk
demand prompted European banks to pick up the currency. []
The euro has pared some of the hefty losses made against the
dollar this year in recent weeks, as concerns over euro zone
sovereign debt levels receded.
"Trichet's press conference yesterday may have been
uneventful but it ensured that the slowly rising enthusiasm for
the euro was not interrupted," said Credit Agricole in a note.
MAIN ETF SEES OUTFLOW
Elsewhere holdings of the world's largest gold-backed
exchange-traded fund, New York's SPDR Gold Trust <GLD>, slipped
again on Thursday, dipping 0.445 tonnes to 1,316.036 tonnes.
The fund's holdings have retreated 4.4 tonnes from the
record 1,320.436 tonnes they stood at in late June, as the safe
haven-related inflows seen in recent months dried up. []
After recent sessions' selling, gold is now looking
vulnerable from a technical perspective, according to analysts
who study charts of past price moves to determine the next
direction of trade.
"Gold is pressuring trendline support from the February lows
at $1,183 and is also capped by the $1,205/15 resistance area,"
said Barclays Capital. "Such price action is bearish."
Industrial commodities firmed, meanwhile, with oil climbing
nearly 0.5 percent in early European trade and copper up around
2 percent at its session highs. These assets are benefiting from
firmer risk appetite and the weaker dollar. [] []
Among the more industrial precious metals, silver prices
held broadly steady in line with gold, bid at $17.85 an ounce
against $17.89 late in New York on Thursday.
Holdings of the largest silver-backed ETF, the iShares
Silver Trust <SLV>, have also dropped just over 25 tonnes since
the end of June to 9,151.78 tonnes.
Platinum <XPT=> was at $1,520.60 an ounce against $1,517,
while palladium <XPD=> was at $446 against $445.50.
"Buying interest overnight and in Asia has seen platinum
recoup yesterday's weakness, as has palladium," said James
Moore, an analyst at TheBullionDesk.com, in a note.
"Short-term we expect further direction from broader
industrial commodity sentiment while favourable fundamentals
will provide ongoing background support," he added.
(Reporting by Jan Harvey; Editing by Alison Birrane)
