Gold steadied on Thursday after hitting an eight-week high earlier, with a weak dollar lending some support but with a pick-up in risk appetite temporarily denting the metal's safe haven appeal. Silver rose to its highest in nearly two months as its cheaper price versus other precious metals attracted bargain buying, ahead of the release of US initial jobless claims data. Poor economic data from the United States on Wednesday, including a slump in new home sales to the slowest pace on record, initially stoked fears the recovery was stalling and prompted some investors to shift to bullion. The fears have since ebbed somewhat. "People have taken the view that housing is bouncing along the bottom, it's not improving but it seems to have formed a base. The data is not alarming, that's why gold perhaps will struggle today to hold onto gains," said Citigroup analyst David Thurtell. The US dollar was under pressure on Thursday after the previous day's poor data, making dollar-priced gold cheaper for non-US investors and boosting the appeal of gold as an alternative asset to the US unit. PRICES * Spot gold was at $1,240.05 an ounce at 08:58 SA time compared with $1,239 late in New York on Wednesday. * Silver was at $18.97 an ounce from $18.93. * Platinum at $1,528 from $1,527. * Palladium at $495.98 from $492.00. DATA/EVENTS 14:30 - WEEKLY US JOBLESS CLAIMS 17:00 - KANSAS CITY FED SURVEY FOR AUGUST 18:00 - CHICAGO FED MIDWEST MANUFACTURING INDEX FOR JULY MARKET NEWS * The yen slipped further from a 15-year high against the dollar on Thursday as investors waited to see if Japanese authorities would go beyond just trying to talk down the currency. The greenback was under pressure after US data on Wednesday heightened fears the world's biggest economy is at risk of another downturn. * Oil rose for a second day on Thursday after a five-session losing streak took prices to 11-week lows, rekindling interest on the basis of technical indicators pointing to a rebound. * European shares rose on Thursday, bouncing back from a five-week low in the previous session as forecast beating results from Credit Agricole and L'Oreal boosted investor sentiment. Strong equities in Asia and a late rebound on Wall Street helped. * Asian stocks rose on Thursday as investors hunted for bargains among recently beaten-down shares, while the yen pulled further away from 15-year highs as investors wondered whether Japanese officials would take fresh steps to curb the currency's strength and spur economic growth. FUNDAMENTALS * Holdings of the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, jumped nearly 13 tonnes last week, its biggest one-week climb since early June. * India's gold demand rose 93.74 percent in the first half of this year due to strong economic growth and investment-led buying, and festivals are likely to maintain the momentum, an official at the World Gold Council (WGC) said on Wednesday. * Gold consumption is set to stay strong in 2010, with India and China providing the main thrust to demand growth and investment increasing, the World Gold Council said in a report released on Wednesday. TECHNICALS * Gold support was at $1 217 an ounce and resistance at $1 242. The 14-day RSI was at 77.21. * Silver support was at $18.55 an ounce and resistance at $19.04. The 14-day RSI was at 72.16. - Reuters

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