* Dollar recovery pulls gold from record above $1,150/oz
* WGC reports 34 pct drop in gold demand in Q3
* SPDR gold, iShares silver ETFs report inflows
(Refiles to fix headline)
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, Nov 19 (Reuters) - Gold prices retreated on Thursday
from the record high above $1,150 an ounce they hit in the
previous session, as the dollar <.DXY> was lifted by
profit-taking in higher-yielding currencies.
Spot gold <XAU=> eased 0.75 percent to $1,135.90 an ounce at
0943 GMT, against $1,144.70 late in New York on Wednesday. In
that session it hit a record $1,152.75 an ounce.
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange fell $4.80 to
$1.136.40 an ounce.
However, analysts say as gold has picked up so much momentum
during its recent rally, which has lifted prices 9 percent since
the beginning of November, the correction could be short-lived.
"We more or less made new highs every single day over last
few weeks," said Saxo Bank senior manager Ole Hansen.
"We will have to have a few days failing to make new highs
before sentiment starts forming that we need a setback before
the move up can continue."
The main influence on gold will be the dollar, strength in
which dents gold's appeal as an alternative asset and makes
dollar-priced commodities more expensive for holders of other
currencies.
The dollar and yen extended broad-based gains on Thursday as
traders took profit from carry trades in currencies and "risk"
positions were pared back in other assets such as equities and
commodities. []
World stocks as measured by MSCI <.MIWD00000PUS> dipped half
a percent, and have fallen more than 1 percent since hitting a
year high on Monday. European shares were lower in early trade.
[] []
Meanwhile oil prices slipped towards $79 a barrel, taking
their cues from the dollar, while industrial metals also
declined. Gold tends to track crude prices, as the metal can be
bought as a hedge against oil-led inflation. [] []
DEMAND FALLS
According to the World Gold Council, which put out its
third-quarter gold demand trends report on Thursday, demand for
the metal fell 34 percent in the period as high prices weighed
on investment and jewellery buying in India and the Middle East.
But Rozanna Wozniak, the WGC's investment research manager,
said speculation in gold futures and expectations for more
official sector bullion buying are keeping prices elevated
despite a lack of physical demand. []
"For most of last year, the buying was very physical," said
Wozniak. "(Now), it seems to be more financial market-driven, by
some of those other less visible instruments -- derivatives,
futures, over-the-counter transactions."
Elsewhere the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust <GLD>, said its holdings rose 3.66 tonnes
or 0.3 percent on Wednesday to 1,117.493 tonnes, their first
rise since November 9. []
Among other precious metals, silver <XAG=> edged down to
$18.26 an ounce against $18.54, tracking losses in gold. The
world's largest silver ETF, the iShares Silver Trust <SLV>, said
its holdings rose to a record 9,021.31 tonnes on Wednesday.
Platinum <XPT=> was at $1,427 an ounce against $1,439.50,
while palladium <XPD=> was at $363.50 against $368.50. Rhodium
<RHOD-LON> hit a 13-month high of $2,550 an ounce, and ruthenium
<RUTH-LON> rose to $85 an ounce, its highest since January.
In supply news, the world's fourth largest platinum miner,
Aquarius Platinum <AQP.L>, said it planned to resume operations
at its Everest mine by Sept 2010 after rehabilitation work.
[]
(Reporting by Jan Harvey; Editing by Keiron Henderson)
