* Euro rebounds versus the dollar after Bernanke comments
* ECB, BoE, non-farm payrolls in focus
* SPDR ETF dips; ETFS silver, palladium assets hit records
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, June 4 (Reuters) - Gold firmed in Europe on
Thursday, recouping some of the previous session's losses, as
the dollar gave up ground to the euro, prompting investors to
buy bullion as a hedge against currency weakness.
Traders are keenly awaiting interest rate decisions from the
Bank of England and the European Central Bank later in the
session and key U.S. non-farm payrolls data on Friday for their
impact on the currency markets.
Spot gold <XAU=> was bid at $968.05 an ounce at 0928 GMT,
against $962.15 an ounce late in New York on Wednesday. Prices
fell nearly 2 percent that session as a recovery in the dollar
prompted traders to cash in gains.
"We saw some profit taking on Wednesday, but are seeing a
return of interest today," David Wilson, a metals analyst at
Societe Generale, said.
"It will be interesting to see U.S. non-farm payrolls data
tomorrow," he added. "If this comes in lower than expectations,
I expect we will see some downward pressure on gold."
The dollar weakened against the euro, reversing some of
Wednesday's gains, as remarks by Federal Reserve Chairman Ben
Bernanke on fiscal deficits the previous day prompted selling of
the U.S. currency. []
Any fresh dollar weakness could prompt more buying of gold
as an alternative asset, and will make dollar-priced commodities
cheaper for holders of other currencies.
"We would expect gold's inverse correlation to the dollar to
remain strong, while its correlation to the stock markets will
start weakening from now on," VTB Capital said in a note.
World equities rose close to 2009 highs on Thursday, while
European shares climbed ahead of the BoE and ECB decisions. The
ECB is seen keeping interest rates at record lows to help revive
the euro zone economy, analysts said. [] [].
HOLDINGS DECLINE
On the investment side, holdings of the world's largest
gold-backed exchange-traded fund, New York's SPDR Gold Trust,
posted a small 1.5-tonne fall on Wednesday. []
The three gold-backed ETFs operated by London's ETF
Securities added 36,655 ounces of bullion to their reserves that
session. But gold demand from India, the world's biggest bullion
consumer, was sluggish as prices stayed high. []
Elsewhere, silver <XAG=> was $15.35 an ounce against $15.30,
tracking moves in the gold market.
Platinum <XPT=> was bid at $1,249 an ounce against
$1,233.50, while palladium <XPD=> was $244 against $240.50, both
benefiting from fund buying. ETF Securities said its silver and
palladium ETFs both hit record levels on Wednesday.
[]
Platinum refiner Johnson Matthey warned its profits and
sales would fall over the coming months as the world car
industry continues to struggle. []
Goldman Sachs, however, said U.S. auto sales are likely to
improve in the second half of 2009. []
(Editing by Sue Thomas)
