* Equities climb in Europe, U.S. stocks open slightly lower
* Industrial commodities pare early gains as jitters remain
* SPDR gold ETF sees fresh outflow as haven appeal wanes
(Releads, updates prices, adds comment)
By Jan Harvey
LONDON, July 9 (Reuters) - Gold rose back above $1,210 an
ounce on Friday as a stock market rally showed signs of running
out of steam, pointing to persistent jitters among investors,
with buyers also attracted by the metal's dip to six-week lows.
Spot gold <XAU=> touched a high of $1,211.10 an ounce and
was bid at $1,207.25 an ounce at 1331 GMT, against $1,196.48
late in New York on Thursday. U.S. gold futures for August
delivery <GCQ0> firmed $11.20 to $1,207.30.
The metal has recovered after falling to its lowest since
late May on Wednesday at just above $1,185 an ounce, but
struggled to make new headway in early trade as appetite for
nominally higher-risk assets like equities returned.
This risk appetite later seemed to be abating, as Wall
Street stocks opened a touch lower and industrial commodities
like oil pared earlier gains.
"The overall picture I think still points to cautiousness,
which is positive for gold," said David Wilson, an analyst at
Societe Generale.
U.S. stocks opened slightly lower on Wall Street on Friday.
European shares rose for a fourth session, lifted by soothing
U.S. jobless and retail sales numbers, but analysts said the
relief rally may not last much longer. [] []
On the currency markets, the euro slipped off two-month
highs against the dollar, with investors taking profits ahead of
the weekend as strategists said its recent rally would peter out
due to lingering worries about the euro zone economy. []
Industrial commodities pared earlier gains, meanwhile, with
oil steadying above $75 a barrel and copper retreating from
session highs at $6,740 a tonne. [] []
ETF HOLDINGS RETREAT
Meanwhile 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. []
Elsewhere, lower prices tempted some buyers back to the
market, with jewellers taking advantage of gold's recent price
correction to restock.
"Although we have entered a seasonally weak period for gold
retail demand, wholesale buyers have taken the opportunity
to buy upon dips, although not aggressively," Barclays Capital
said in a note.
"We do expect continued investor interest in gold to drive
prices higher as the year unfolds, however near term long
liquidation given elevated speculative length could cap upward
momentum in the seasonally softer summer months."
Among the more industrial precious metals, silver prices
firmed slightly in line with gold, bid at $18.01 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 $1,519.50 an ounce against $1,517,
while palladium <XPD=> was at $449.28 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 Anthony Barker)
