PRECIOUS-Gold edges up in choppy trade as dollar dips

* U.S. May inflation data lower than expected

* iShares Silver ETF hits record levels

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By Jan Harvey and Kylie MacLellan

LONDON, June 17 (Reuters) - Gold edged higher in choppy trade on Wednesday as the dollar slipped in the wake of lower-than-expected U.S. inflation data for May, which boosted expectations interest rates may stay low.

Spot gold XAU= was bid at $935.40 an ounce at 1534 GMT, against $934.10 an ounce late in New York on Tuesday. U.S. gold futures for June delivery GCM9 on the COMEX division of the New York Mercantile Exchange rose 10 cents to $931.70 an ounce.

U.S. equities declined on Wednesday after European shares slipped to three-week lows, as investors grew sceptical about the speed of the global economic recovery. [.EU] [MKTS/GLOB]

Fairfax analyst Marc Elliott said while rising risk aversion was turning investors away from equities towards safer assets such as gold, it was also boosting the dollar, and "if the dollar gets stronger, that is not so good for gold".