* Gold recovers some ground as dollar falters vs euro
* Economic jitters boost safe-haven appeal
By Nick Vinocur
LONDON, July 3 (Reuters) - Gold rose on Friday, steadying
above $931 per ounce as the dollar lost ground versus the euro,
with deeper concerns over the U.S. economic outlook aalso
underpinning the metal.
Spot gold <XAU=> stood at $932.65 by 1109 GMT, up from
$928.65 late in New York. Earlier it rose to $933.50.
After a week of tracking a volatile dollar, gold is on track
for a 0.6 percent fall on the week -- retreating further from a
four-month high near $990 hit in early June.
The precious metal found support above $931 after falling on
Thursday, when weaker-than-expected U.S. non-farm payroll data
sent investors piling into the relative safety of the dollar.
Dollar moves have recently proved influential in determining
immediate interest for bullion from foreign investors, but the
bleak jobs data and other mixed economic indicators have
highlighted gold's core appeal as a harbour from risk.
The U.S. currency <.DXY> lost some ground against a basket
of six currencies but remained broadly positive on Friday, with
U.S. financial markets closed ahead of Independence Day.
"Gold found a bit of support overnight out of Asia on these
dips, but effectively, it's gone sideways," said Tom Kendall, an
analyst at Mitsubishi. "Today it's been fairly soggy trade," he
added.
Bearish sentiment in the wake of weak unemployment data from
the United States and Europe on Thursday weighed on other
commodities, dragging crude <CLc1> below $67 per barrel. []
DOLLAR BLUES
Analysts said a combination of persistent worries -- from
quantitative easing to Chinese remarks about currency reserve
diversification -- would keep the dollar under pressure and
provide a backbone of support for gold in months ahead.
"Part of the reason gold's retreat was tempered really has
to do with the limited upside to which the dollar is gaining,"
said Ashraf Laidi, an analyst at CMC markets.
"This is partially due to worries about quantitative easing
and these Chinese rumblings about diversification," he added.
U.S. gold futures for August delivery <GCQ9> rose 0.2
percent to $933.10 per ounce, compared with $931.00 on the COMEX
division of the New York Mercantile Exchange.
While investor interest in gold appeared stable, physical
demand was lagging.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings were 1,120.55 tonnes as of
July 2, unchanged from the previous business day. []
Holdings in gold by ETF Securities, which reflect retail
appetite for bullion, dropped by 12,543.53 ounces as of July 2,
according to a daily report from the company.
Indian data showed the country's gold imports stood at about
59.8 tonnes in the first six months this year, down 57 percent
from the same period last year. India's gold imports in June
were likely around 8 to 10 tonnes, down 24 tonnes from the same
month a year ago, a senior official from Bombay Bullion
Association said this week. []
In other precious metals, spot silver <XAG=> inched up to
$13.43 per troy ounce versus $13.38 previously, platinum <XPT=>
firmed to $1,182.00, while palladium <XPD=> stood at $248.50
from $249.00.
(Additional reporting by Chikako Mogi; Editing by Veronica
Brown)
