* Latest N.Korea missile launch fails to budge gold
* Eyes on GM's fate, due to its impact on equities
* SPDR gold ETF <XAUEXT-NYS-TT> holdings unchanged
By Miho Yoshikawa
TOKYO, May 27 (Reuters) - Gold slipped below $950 on
Wednesday as firm stock markets continued to dull some of
bullion's sheen, although traders were keeping a cautious eye
on the fate of General Motors Corp, for its impact on equities.
Bullion was trading largely within Wednesday's ranges, when
a stronger dollar and a rally on Wall Street -- which both
benefited from a jump in U.S. consumer confidence -- spurred
selling of gold.
Gold <XAU=> was at $948.20 an ounce by 0654 GMT, down 0.3
percent from New York's notional close of $951.25.
U.S. gold futures for June delivery <GCM9> were at $948.60
per ounce, down 0.5 percent from its settlement.
North Korea threatened on Wednesday to attack the South
after Seoul joined a U.S-led initiative to check vessels
suspected of carrying equipment for weapons of mass
destruction. []
The news, coming on the heels of the North's first nuclear
test since 2006 earlier this week, failed to support gold
despite the precious metal's traditional appeal in times of
geopolitical tension.
"I think many see this as having limited regional impact,
and it hasn't affected gold," said Shuji Sugata, a manager at
Mitsubishi Corp Futures & Securities.
He said that much of gold's recent moves could also be
attributed to end-month position adjustments.
Sugata said that of more pressing interest to investors was
the future of General Motors <GM.N>, which has until a June 1
government-set deadline to prove its viability or face
bankruptcy.
The news could cause turmoil in stock markets, which could
benefit gold as an alternative asset.
General Motors has failed to persuade enough bondholders to
accept a debt-for-equity swap, setting the stage for the
largest-ever U.S. industrial bankruptcy within days.
[]
"I think the market's hovering around current levels
because its waiting to see how the GM story unfolds," Sugata
said.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings stood at 1,118.76 tonnes
as of May 26, unchanged from the previous business day.
[]
The first notable rise in ETFs in recent months reported
recently was seen as indicating a return in investment
interest.
Latest economic data from Japan reinforced market views
that the worst of the global slump in trade may be over, with
exports rising for a second month in April compared to the
previous month. []
In industry news, Goldcorp's <G.TO> CEO said on Tuesday the
company should benefit this year from a continuing reduction in
costs combined with a return of prices to record high levels.
[]
Precious metals prices at 0654 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 948.45 -2.80 -0.29 13.90
Spot Silver 14.50 -0.05 -0.34 -1.83
Spot Platinum 1131.50 -0.50 -0.04 -25.56
Spot Palladium 228.00 -1.00 -0.44 -38.04
TOCOM Gold 2914.00 -3.00 -0.10 -4.77
31982
TOCOM Platinum 3489.00 -15.00 -0.43 -34.65
11124
TOCOM Silver 441.30 -2.20 -0.50 -18.43
168
TOCOM Palladium 711.00 -9.00 -1.25 -47.37
206
Euro/Dollar 1.3952
Dollar/Yen 95.12
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Risa Maeda; Editing by Clarence
Fernandez)
