* SPDR gold ETF <XAUEXT-NYS-TT> gains, 1st time in a month
* More signs of economic turmoil would give gold fresh lift
* Dollar firms against the euro
By Humeyra Pamuk and Pratima Desai
LONDON, May 14 (Reuters) - Gold dipped on Thursday as the
dollar firmed, but was seen supported by risk aversion as equity
markets succumbed to doubts that a recent winning streak was
sustainable.
A fall in U.S. retail sales data on Wednesday dented
sentiment that had boosted equity and commodity markets and
signalled that the economy's troubles were far from over.
Spot gold <XAU=> was at $922.70 per ounce at 0934 GMT, from
$925.45 late in New York on Wednesday, when it touched a
six-week high on buying by gold-backed exchange-traded funds.
"We think equity markets have overcooked the upturn," said
Michael Lewis, global head of commodities research at Deutsche
Bank.
"You could see the S&P falling, that could, depending on the
degree of fall could trigger more discussion of quantitative
easing in the U.S., which could contribute to weakness in the
dollar," he said.
The dollar rose <EUR=>, touching its highest against the
euro in roughly a week, after the weak U.S. retail data kept
risk aversion high. Gold becomes more expensive for holders of
other currencies as the U.S. currency strengthens.[]
Wall Street tumbled in the previous session, dragging down
European shares at the open, before rebounding slightly. []
[]
BULLISH
With the world economy not out of the woods yet, analysts
saw higher price prospects for gold.
"We're bullish for the next couple of months. We feel that
these reflationary trades...are now going to be under attack and
those sorts of environments do tend to see flows into gold
ETFs," Lewis said.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said holdings had risen to 1,105.62
tonnes as of May 13, up 1.53 tonnes from the previous business
day for the first gain in a month.
The holdings began falling after hitting a record high on
April 9 as a rise in share prices lessened bullion's appeal.
[]
Ronald Leung, a dealer at Lee Cheong Gold Dealers, said it
was too early to say the modest rise signalled the start of
buying into ETFs, which earlier this year attracted risk-wary
investors.
"It's only increased a little bit. It's not very
significant," he said.
U.S. gold futures for June delivery <GCM9> were little
changed at $925.00 per ounce, slightly down from Wednesday's
settlement of $925.90 on the COMEX division of the New York
Mercantile Exchange.
"Gold failed to get through $930 yesterday and obviously
we've backed away from there but there's been safe haven
interest that's helped support it," Simon Weeks, director of
precious metals at the Bank of Noca Scotia, said.
Vietnam's gold traders have sought permission from the
central bank to import up to $600 million worth of gold, calling
for an end to a year-long ban, a state-run newspaper reported.
[]
Platinum <XPT=> was at $1,101.50/1,111.50 an ounce from
$1,111.00 while silver <XAG=> was at $13.76/13.82 from $13.94
and palladium <XPD=> at $223/226 from $220.50.
(Additional reporting by Maytaal Angel, Editing by Sue Thomas)
