* Oil rallies 5 percent ahead of U.S. stocks data
* Dollar remains weaker versus the euro
* U.S. stocks climb at the open, European shares tick up
(Recasts, updates prices, adds comment)
By Jan Harvey
LONDON, Dec 10 (Reuters) - Gold climbed 4 percent on
Wednesday to a 10-day high above $800 an ounce as oil prices
rallied ahead of U.S. stockpiles data, and on dollar weakness
against the euro.
Strength in the industrial metals and firmer equity markets
also cheered buyers, as U.S. stocks rose at the open and
European shares edged higher.
Spot gold <XAU=> rose to a session high of $807.70 an ounce,
and was quoted at $805.50/807.50 an ounce at 1433 GMT, up from
$775.50 an ounce in New York late on Tuesday.
In sterling terms it rose to 545.63 pounds, only 1 percent
from the high of 550.82 pounds it reached in October.
U.S. gold for February delivery <GCG9> was up $32.20 an
ounce at $806.40 on the COMEX division of the New York
Mercantile Exchange. It reached a high of $808.70 in earlier
trade, its firmest since Dec 1.
Citi analyst David Thurtell said gold's rise had been
fuelled by technical factors, as key stops were triggered below
$800 an ounce. "There is a little dollar weakness and oil
jumped...so that is giving it a hand," he added.
Rising crude prices, which can boost interest in commodities
as an asset class and in gold as a hedge against oil-led
inflation, have supported the precious metal.
Oil jumped more than 5 percent to over $44 a barrel. Traders
are looking ahead to U.S. stocks data later in the session and
next week's meeting of oil cartel OPEC, where production cuts
will be discussed. []
"There is speculation that further OPEC oil production cuts
could lift prices," Fairfax analyst John Meyer said.
The dollar slipped to a two-week low against the euro as a
tentative U.S. plan to bail out carmakers relieved some risk
aversion, which had benefited the U.S. currency. Traders sold
the dollar and low-yielding yen as market volatility calmed.
[]
Traders are also eyeing the equity markets, which provided
strong direction to gold on Tuesday. U.S. stocks rose at the
open as news of a tentative agreement to provide aid to U.S.
automakers calmed investor fears. []
European equities also edged higher as gains in miners, led
by Rio Tinto <RIO.L> after it announced job cuts, outweighed
falling bank stocks. []
"Equities are going up, and that's helping gold," Calyon
analyst Robin Bhar said.
PLATINUM FIRMS
Platinum and palladium also strengthened a touch as the
market awaited fresh news on a potential rescue plan for ailing
U.S. automakers, which could improve the demand outlook for the
metals used in catalytic converters.
Traders are eyeing a $15 billion U.S. plan to bail out
carmakers, whose problems have knocked the metal in recent
months.
The U.S. House of Representatives could vote as early as
Wednesday on a plan to restructure carmakers but the project
could still be blocked by the Senate, officials said.
[]
Lawmakers fear that a collapse of any of the Big Three
automakers -- General Motors <GM.N>, Chrysler or Ford <F.N> --
could deepen the U.S. recession.
But while talk of the bailout has helped arrest the metal's
sharp slide -- platinum has shed more than 65 percent of its
value since its March peak -- it may not push it higher.
"Given the slowdown in demand for platinum group metals,
this news is only likely to provide a temporary boost to
prices," Barclays Capital said in a note.
Spot platinum <XPT=> was quoted at $820.50/840.50 an ounce,
against $803.50, while sister metal palladium <XPD=> was up at
$176.50/184.50 an ounce against $174.
Among other precious metals, spot silver <XAG=> rose to
$10.14/10.22 an ounce from $9.79.
(Editing by Sue Thomas)
