* U.S. jobless claims rise to more than four-month high
* Trade volume subdued ahead of U.S. Thanksgiving holiday
* GRAPHIC-2018 asset returns: (Updates prices, adds details and comment)By Sumita LayekBENGALURU, Nov 21 (Reuters) - Gold rose on Wednesday as thedollar retreated after weekly data showed an increase in U.S.jobless claims, though bullion's gains were seen as limited by arecovery in equity markets.
Spot gold rose 0.4 percent to $1,225.76 per ounce by1408 GMT, having moved in an $8 range ahead of the U.S.Thanksgiving holiday. It hit its highest since Nov. 7 on Tuesdayat $1,228.79.U.S. gold futures rose 0.4 percent to $1,226.30 perounce.Gold, which sometimes benefits from volatility in the widermarkets, ended Tuesday lower as investors sought refuge in thedollar from a slide in world stocks and oil prices, but themetal fared better than other commodities, analysts said.
"The big sell-off in equity markets, the big sell-off in oilhelped to prop up gold prices, maybe not to a degree many wouldexpect, but it did hold up relatively well compared to the restof the commodities," ING analyst Warren Patterson said.The dollar weakened against a basket of currencies after U.S. jobless claims rose to a more than four-month high.The greenback posted its biggest daily percentage gain in twoweeks on Tuesday as a sell-off in world stocks spurredsafe-haven bids..
"Gold is benefiting from a cross-asset bounce and the dollaris also a little bit softer. We are seeing this across a widespread of commodities," said Marcus Garvey, commoditiesstrategist at ICBC Standard Bank."(For gold) to really be able to break out (of the currentnarrow range), you need a longer period of dollar softness."The U.S. unit, weakness in which makes gold cheaper forholders of other currencies, has also been pressured this weekby dovish comments from U.S. Federal Reserve officials, whichcast doubt over the pace of monetary tightening. Meanwhile, world stocks steadied following a sell-off in theprevious session. Investors were now looking to a G20 summit in Argentinalater this month, when U.S. President Donald Trump is expectedto meet Chinese President Xi Jinping to discuss their tradedispute. "If a deal is reached then the gold price could drop asreduced economic uncertainty leads to lower safe-haven demand,"Heraeus said in a note.Silver climbed 0.9 percent to $14.44 an ounce. It hitits highest since Nov. 8 at $14.49 in the previous session.Palladium gained 0.8 percent to $1,149.90 per ounce,while platinum was up 1.2 percent at $847.70 per ounce. (Reporting by Sumita Layek and Eileen Soreng in Bengaluru;Editing by Jan Harvey and Dale Hudson)
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