* Gold may retract to $1,514/oz-technicals [ID:nL3E7H104I]
* Coming up: U.S. ISM manufacturing PMI, May; 1400 GMT (Adds detail; updates prices)
By Rujun Shen
SINGAPORE, June 1 (Reuters) - Spot gold edged lower on Wednesday, as easing worries about the Greek debt crisis dampened some appetite for bullion, but a weaker dollar is expected to provide support.
Gold came off a four-week high of $1,540.50 hit in the previous session, as European officials met to sketch out options for a second bailout package for Greece, boosting investor risk appetite. [ID:nLDE74U1G7]
"Gold has retraced a little primarily as a result of the easing in the Greece situation to certain extent," said Darren Heathcote, head of trading at Investec Australia. "It's given the market a little bit comfort that we might see a reasonable resolution."
Spot gold edge down 0.2 percent to $1,532.20 an ounce
by 0604 GMT, after posting a 1.8-percent decline in May. U.S.
gold
Technicals suggest that spot gold may retrace to $1,514, said Reuters market analyst Wang Tao. [ID:nL3E7H104I]
"Technically, it looks like that gold might be going low, but I don't see any justification for it to break much below $1,520," said Heathcote of Investec. "I don't think we are close to having it (the Greek debt crisis) completely solved yet, and the market will remain skeptical and well supported."
Supporting sentiment, the dollar edged down against a basket of currencies as the euro hit a three-week high against the greenback, on hopes for an agreement on Greece austerity steps and progress towards a second aid package.
Mexico's central bank moderately expanded its gold holdings in April, buying 190,000 ounces of gold, worth nearly $282 million based on average spot price of the month, after buying more than $4 billion in bullion in March. [ID:nN31102156]
On the physical market, dealers earlier spotted light scrap selling from Thailand, and muted buying from India and China, the world's top two gold consumers.
"The premium in Singapore is at 60 to 80 cents (above spot prices), down from last week, because the market demand is lower," said a Singapore-based dealer. "Some people are waiting for the price trend to revert so that they can buy on the dip."
Investors are also looking ahead to U.S. non-farm payrolls data due on Friday for clues on the progress of economic recovery in the world's top economy, after sluggish data on Wednesday suggested the U.S. economy was losing momentum.
Spot silver declined 0.9 percent to $38.11.
U.S. silver
Chinese bank regulator told banks to adequately warn investors in silver forward of trading risks, after wild price swings in the past month. [ID:nL3E7H109I]
Precious metals prices 0604 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1532.20 -2.45 -0.16 7.94 Spot Silver 38.11 -0.33 -0.86 23.49 Spot Platinum 1821.74 -6.36 -0.35 3.07 Spot Palladium 772.78 -1.32 -0.17 -3.34 TOCOM Gold 4017.00 -12.00 -0.30 7.72 47616 TOCOM Platinum 4815.00 41.00 +0.86 2.53 14107 TOCOM Silver 99.50 -0.20 -0.20 22.84 1378 TOCOM Palladium 2029.00 36.00 +1.81 -3.24 329 COMEX GOLD JUN1 1532.90 -3.00 -0.20 7.84 238 COMEX SILVER JUL1 38.11 -0.20 -0.51 23.17 4216 Euro/Dollar 1.4439 Dollar/Yen 81.28 TOCOM prices in yen per gram. Spot prices in $ per ounce. COMEX gold and silver contracts show the most active months (Editing by Ed Lane)