Gold droppped about half a percent on Thursday as the euro slipped against the dollar and equities weakened after Federal Reserve Chairman Ben Bernanke expressed concerns about the health of the U.S. economy.
FUNDAMENTALS
* Spot gold fell $6.05to $1,185.75 an ounce by 0058 GMT, within sight of a 2-month low around $1,175 an ounce struck on Tuesday. Bullion was more than 6 percent below a lifetime high hit in late June.
* U.S. gold futures for August delivery slipped 0.5 percent to $1,185.6 an ounce.
* The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said holdings were unchanged at 1,308.128 tonnes. The holdings hit a record at 1,320.436 tonnes on June 29.
MARKET NEWS
* Japan's Nikkei average fell 0.7 percent on Thursday, tracking declines in Wall Street after Bernanke's remark the U.S. economy faces "unusually uncertain" prospects added to worries about the recovery.
* U.S. crude futures stood little changed above $76 a barrel on Thursday after falling 1.3 percent a day earlier on Bernanke's expression of concern about the economy and an unexpected rise in U.S. crude oil inventories last week.
* The euro fell sharply against the dollar while the yen rallied on Wednesday after Bernanke expressed concern about the U.S. economy and dampened risk appetite.
