Gold retreats in Europe

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 as investors took profits in higher-yielding currencies. Spot gold 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.
US gold futures for December delivery 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. 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 September 27. Prices are also benefiting from the number of call options, or rights to buy, being placed at elevated levels on US 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. 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.
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, 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 edged down to $18.28 an ounce against $18.54, tracking losses in gold. The world's largest silver ETF, the iShares Silver Trust, said its holdings rose to a record 9,021.31 tonnes on Wednesday. Platinum was at $1,432 an ounce against $1,439.50, while palladium was at $363 against $368.50. Rhodium hit a 13-month high of $2,550 an ounce, and ruthenium rose to $85 an ounce, its highest since January.