* Precious metals hit 1-week highs as dollar slides
* Rising risk appetite after Fed bouys commodities, equities
* U.S. retail sales, jobless claims weigh on oil, equities
(Adds details, comment, updates prices)
By Jan Harvey and Martina Fuchs
LONDON, Aug 13 (Reuters) - Gold held above $955 an ounce on
Thursday, supported by dollar weakness, though it retreated from
the one-week high it hit earlier in the session as oil pared
gains in the wake of disappointing U.S. economic data.
Positive European growth data earlier in the session and
comments from the Federal Reserve on Wednesday that the U.S.
recession may be nearing an end were supporting the appeal of
assets seen as riskier, like commodities, analysts said.
Spot gold <XAU=> was bid at $957.40 an ounce at 1453 GMT,
against $946.05 an ounce late in New York on Wednesday. Earlier
it hit a peak of $960.10, its highest since August 7.
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange rose $6.90 to
$959.40 an ounce.
VTB Capital analyst Andrey Kryuchenkov said risk appetite
had been dampened by the U.S. data, but said underlying interest
in gold remained firm.
"A bit of a negative macro data will affect the market, but
this morning we had the strong European growth figures which
were very impressive for Germany and France, and for the moment
overshadows everything else," he said.
The precious metals rallied early on Thurday as the euro hit
a one-week high against the dollar after the euro zone's two
biggest economies posted surprise returns to growth in the
second quarter. []
The reports contrasted with economic data released in the
United States, where disappointing retail sales and jobless
numbers further weighed on the dollar. []
European equities edged off highs in the wake of the U.S.
data, having earlier hit a nine-month peak after upbeat comments
on the U.S. economic outlook from the Federal Reserve on
Wednesday helped lift interest in assets seen as riskier. []
U.S. equities opened higher but quickly pared gains. []
Oil, which had also rallied strongly in early trade, also
retreated from highs, though it remained above $70 a barrel.
Gold often moves in line with crude, the bellwether commodity,
as it can be bought as a hedge against oil-led inflation. []
DEMAND SOFT
Demand for physical gold from exchange-traded funds was
soft, however, with holdings of the largest, New York's SPDR
Gold Trust <GLD>, flat for a second day on Wednesday. []
"The most important demand driver from the investment side
for the gold ETF is non-existent," said Commerzbank analyst
Eugen Weinberg. "The ETF has been experiencing outflows
recently, so this is not a dynamic component.
"The most dynamic one is the positioning of the speculators
on the COMEX (futures exchange), and this is probably mostly
based on the outlook for the U.S. dollar," he said.
Other precious metals hit one-week highs earlier in the day.
Silver <XAG=> reached a peak of $15.01 an ounce, platinum <XPT=>
hit $1,268.50 and palladium <XPD=> rose as high as $276.50.
"We are seeing again the dollar weakening and platinum
prices moving up a little bit alongside gold," said Commerzbank
platinum group metals trader Rory McVeigh.
In later trade, silver was at $14.97 an ounce against
$14.51, platinum was at $1,265.50 an ounce against $1,238, and
palladium was at $275.50 against $270.
In other news, South Africa's state power firm Eskom said it
had reached an agreement with unions over pay and a housing
policy, averting a strike that could have led to power cuts and
hurt Africa's biggest economy. []
(Editing by James Jukwey)
