* Dollar firms, risk assets retreat on caution ahead of Fed
* Indian gold demand picks up during festival season
* Aquarius Platinum announces FY loss, blame falling prices
(Updates throughout, previous TOKYO)
By Jan Harvey
LONDON, Aug 12 (Reuters) - Gold prices slipped in Europe on
Wednesday as the dollar firmed versus the euro, with caution
ahead of the Federal Reserve announcement on monetary policy
later in the day denting interest in assets seen as higher risk.
Spot gold <XAU=> was bid at $942.45 an ounce at 0847 GMT,
against $944.55 an ounce late in New York on Tuesday. U.S. gold
futures for December delivery <GCZ9> on the COMEX division of
the New York Mercantile Exchange fell $2.80 to $944.80 an ounce.
"Gold is under pressure because of a stronger dollar," said
Standard Bank analyst Walter de Wet. "Ahead of the meeting the
market is unlikely to get itself too short because of the
possibility of a surprise announcement of quantitative easing."
Such an announcement would be positive for gold, he said,
but added: "If you look at the interest rate and equities
markets it seems as if everybody expects no more quantitative
easing by the Fed."
The Federal Open Market Committee will release its decision
on rates and accompanying statement at 1815 GMT.
The dollar rose against the euro and versus a basket of six
major currencies on Wednesday ahead of the decision, as market
participants pulled back from riskier assets. []
Oil meanwhile steadied below $70 a barrel after four
consecutive sessions of losses as the market awaited U.S.
inventory data and the results of the Fed meeting. []
On other markets, European shares declined in early trade as
investors stuck to the sidelines ahead of the Fed. Asian markets
sagged, with Shanghai stocks tumbling to a four-week low.
[]
ETF OUTFLOW
Investment demand for physical gold remains soft, with the
world's largest bullion-backed exchange-traded fund, the SPDR
Gold Trust <GLD>, reporting a new outflow on Tuesday. Its
holdings have fallen more than seven tonnes in the last week.
[]
"With more investor redemptions expected after a further 3
tonnes of gold was cut from the SPDR ETF yesterday, gold will
remain at risk to further pressure," said TheBullionDesk.com
analyst James Moore.
Gold buying is picking up in the world's largest bullion
consumer, India, however, as jewellers take advantage of a price
decline to stock up during the festive season.
India celebrates the festivals of Raksha Bandhan,
Janmasthami and Ganesh Chaturthi in August. []
In supply news, top 10 gold producer Harmony Gold Mining
<HARJ.J> said a mineworker died after an accident at its
Elandsrand mine in South Africa on Friday. []
Production was suspended at the facility after the incident
and is likely to restart on Thursday, it said.
Meanwhile Aquarius Platinum <AQP.AX>, the world's number
four producer of the white metal, announced a full-year net loss
of $45.7 million, blaming a slide in metals prices. Platinum
fell 47 percent last year as the economic slowdown hit demand.
The company said its production of platinum group metals
fell 9 percent to 455,675 ounces in its last financial year.
[]
Platinum <XPT=> was at $1,223.50 an ounce against $1,237,
while palladium <XPD=> was at $267.50 against $271. Silver
<XAG=> was at $14.18 an ounce against $14.27.
(Additional reporting by Martina Fuchs; Editing by James
Jukwey)
