* Dollar recovers losses versus euro after U.S. data
* U.S. November retail sales rise more than expected * Russia state repository to sell gold to cenbank-source
(Updates prices)
By Jan Harvey
LONDON, Dec 11 (Reuters) - Gold prices turned negative in Europe on Friday after earlier rising above $1,140 per ounce, as above-consensus November U.S. retail sales data boosted the dollar, curbing interest in gold as an alternative asset.
Spot gold <XAU=> was bid at $1,129.20 an ounce at 1411 GMT, against $1,130.15 late in New York on Thursday. Earlier it rose as high as $1,141.90 an ounce.
The dollar recouped its early decline to turn higher against the euro midafternoon after data showed U.S. retail sales rose more than expected in November, raising hopes of a self-sustaining economic recovery. [
] [ ]"We had very good numbers coming out, the dollar got a bit of a boost on the back of this and gold lost a few dollars," said Afshin Nabavi, head of trading at MKS Finance in Geneva.
He said gold was likely to settle into a $1,100-1,160 range until the end of the year ahead of further gains in early 2010.
"This may just be a correction in the dollar, as well as in the metal," he said. "Come 2010, provided we have no further surprises, I think we are more likely to see the higher end of the market."
U.S. gold futures for February delivery <GCG0> on the COMEX division of the New York Mercantile Exchange were up $3.80 to $1,130.00, down from an earlier high of $1,143.40.
Among other commodities, oil prices also edged up 0.2 percent to near $71 a barrel. Gold tends to track crude prices, as the metal can be bought as a hedge against oil-led inflation.
Elsewhere a source at the Russian state repository Gokhran said on Friday it is likely to sell 30 tonnes of gold to the country's central bank next week. Traders say central bank interest in gold as a reserve asset is growing. [
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CHINA OUTPUT CLIMBS
On the physical side of the market, premiums for gold bars firmed in Asia after gold retreated from record highs, while higher Indian jewellery during the wedding season helped offset scrap sales from other Asian holders, dealers said. [
]China's Ministry of Industry and Information Technology said on Friday the country produced 26.354 tonnes of gold in October. Gold output in the first 10 months rose 14.1 percent to 254.552 tonnes, it added. [
]China is the world's main gold producer, and is set to take over from India as the biggest bullion consumer this year as well, according to the World Gold Council. [
]On the investment side, the world's largest gold exchange-traded fund, the SPDR Gold Trust <GLD>, said its holdings held steady on Thursday after seeing their biggest outflow since July earlier this week. [
]Among other precious metals, silver <XAG=> was at $17.30 an ounce against $17.37, platinum <XPT=> was at $1,422.50 an ounce against $1,422 and palladium <XPD=> at $363 against $362.50.
James Moore, an analyst at TheBullionDesk.com, said he expects to see further gains the platinum group metals.
"Further chart support around $1,390-1,410 and $358/353 is expected in the coming sessions, with the longer-term outlook still upbeat as recovering auto and industrial sales are set to increase metal demand," he said.
ETF Securities said holdings of its ETFS Physical Palladium exchange-traded product <PHPD.L>, which gives investors in its securities exposure to the spot palladium price, rose to a record 650,273 ounces on Thursday.
Prices of fellow platinum group metal rhodium <RHOD-LON> continued to correct on Friday after rising to 13-month highs at $2,750 an ounce at the end of November. They have since declined 23 percent to $2,125 an ounce. (Reporting by Jan Harvey; Editing by Anthony Barker)