Gold inched down on Wednesday to slip below $950 as firm stock markets continued to dull some of bullion's sheen, although traders kept a cautious eye on the fate of General Motors Corp, for its impact on equities.
Bullion was trading largely within Wednesday's ranges, when a stronger dollar and a rally on Wall Street -- which both benefited from a jump in U.S. consumer confidence -- spurred selling of gold.
Gold was at $947.60 an ounce by 0242 GMT, down 0.4 percent from New York's notional close of $951.25.
U.S. gold futures for June delivery were at $948.6 per ounce, down 0.5 percent from its settlement.
North Korea appeared to have fired a third short-range missile late on Tuesday, the South's Yonhap news agency reported quoting an unnamed government source. [ID:nSP72126]
The news, which came on the heels of the launch of two other missiles on Tuesday, failed to support gold despite the precious metal's traditional appeal in times of geopolitical tension.
"I think many see this as having limited regional impact, and it hasn't affected gold," said Shuji Sugata, a manager at Mitsubishi Corp Futures & Securities.
He said that much of gold's recent moves could also be attributed to end-month position adjustments.
Sugata said that of more pressing interest to investors was the future of General Motors , which has until a June 1 government-set deadline to prove its viability or face bankruptcy.
The news could cause turmoil in stock markets, which could benefit gold as an alternative asset.
General Motors has failed to persuade enough bondholders to accept a debt-for-equity swap, setting the stage for the largest-ever U.S. industrial bankruptcy within days. [ID:nN26485137]
"I think the market's hovering around current levels because its waiting to see how the GM story unfolds," Sugata said.
The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust , said holdings stood at 1,118.76 tonnes as of May 26, unchanged from the previous business day. [GOL/SPDR]
The first notable rise in ETFs in recent months reported recently was seen as indicating a return in investment interest.
Latest economic data from Japan reinforced market views that the worst of the global slump in trade may be over, with exports rising for a second month in April compared to the previous month.
