* Dollar recovery pulls gold from record above $1,150/oz
* CBGA signatories sell only 1.5 tonnes in 1st year of pact
* SPDR gold, iShares silver ETFs report inflows
(Updates prices, adds comment)
By Jan Harvey
LONDON, Nov 19 (Reuters) - Gold prices retreated on Thursday
from the record high above $1,150 an ounce they reached in the
previous session, reacting to a rise in the dollar <.DXY> as
investors took profits in higher-yielding currencies.
Spot gold <XAU=> dipped 0.8 percent to $1,135.30 an ounce at
1519 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 $5.40 to
$1,135.80 an ounce.
But the precious metal remains firmly underpinned by
positive investment sentiment after a number of central bank
bullion purchases earlier in the month, traders say, including
India's acquisition of 200 tonnes of gold from the IMF.
"The expectation is that there will be more of that to
come," said Simon Weeks, director of precious metals at the Bank
of Nova Scotia.
"From a sentiment point of view, that indicates that central
banks are looking for ways of addressing reserve imbalances. As
such, that is a positive for gold."
The World Gold Council said on Thursday only a "negligible"
1.5 tonnes of gold had been sold by signatories of the Central
Bank Gold Agreement in the year starting Sept.27. []
Prices are also benefiting from the number of call options,
or rights to buy, being placed at elevated levels on U.S.
December gold futures, traders said.
But gold is still suffering pressure from its main
influence, the dollar, strength in which dents the metal's
appeal as an alternative asset and makes dollar-priced
commodities more expensive for holders of other currencies.
The dollar and yen rose on Thursday as declines in stock and
commodity markets revived the safe-haven appeal of the U.S. and
Japanese currencies. []
World stocks as measured by MSCI <.MIWD00000PUS> dipped
three quarters of a percent, while European shares fell and Wall
Street equities dropped after U.S. data. [] []
Oil prices slid nearly 2 percent and industrial metals
declined. Gold tends to track crude, as the metal can be bought
as a hedge against oil-led inflation. [] []
MOMENTUM INTACT
Analysts say as gold has picked up so much momentum during
its recent rally, which has lifted prices 9 percent since the
start of November, its current 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 WGC said demand for the metal fell 34 percent in the
third quarter as high prices weighed on investment and jewellery
buying in India and the Middle East. []
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. []
Silver <XAG=> edged down to $18.28 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 $1,432 an ounce against $1,439.50,
while palladium <XPD=> was at $363 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.
(Reporting by Jan Harvey; Editing by William Hardy)
