* Gold rallies as risk appetite improves broadly
* Dollar remains weaker versus the euro, oil rallies
* Newmont CEO: government stimulation will help gold
(Recasts, updates with quotes, closing prices, adds NEW
YORK to dateline, changes byline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Dec 10 (Reuters) - Gold ended over 4
percent higher on Wednesday, rising above $800 an ounce on the
back of technical support, broad-based commodity gains and
higher appetite for risks across all asset classes.
Strength in the industrial metals and firmer equity markets
also cheered buyers, as U.S. stocks held onto initial gains
because of improved economic sentiment.
"It's the strength that we are seeing in the global equity
markets, and the better appetite for risk that is taking place
today," said Tom Pawlicki, precious metals and energy analyst
at MF Global.
Spot gold <XAU=> traded at $807.70 an ounce at 3:10 p.m.
EST (2010 GMT), up 4.1 percent from Tuesday's close of
$775.50.
In sterling terms <XAUGBP=R>, it rose to 547.58 pounds,
only a hair below the recent high of 550.82 pounds it reached
in October.
U.S. gold futures for February delivery <GCG9> settled up
$34.60, or 4.5 percent, at $808.80 an ounce on the COMEX
division of the New York Mercantile Exchange.
Citi analyst David Thurtell said gold's rise had been
fueled 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 rose more than 3 percent to over $43 a barrel as OPEC
kingpin Saudi Arabia has slashed supplies to customers for
January. []
The dollar slipped to a two-week low against the euro as a
tentative U.S. plan to bail out carmakers helped calm investor
sentiment. []
Traders are also eyeing the equity markets, which provided
strong direction to gold on Tuesday. U.S. stocks were still
higher in late trade on optimism that the rescue plan could
help automakers and the economy. []
European equities also edged higher as gains in miners, led
by Rio Tinto <RIO.L> after it announced job cuts, outweighed
falling bank stocks. []
Gold mining executives also said that the government market
bailout plan would help gold.
"There are just a lot of economic signs that would indicate
that the amount of stimulation that the federal government is
suggesting it is going to take to get the economy moving, will
lead to a depressed U.S. currency," Richard O'Brien, chief
executive of Newmont Mining <NEM.N>, the world's second largest
gold producer, said in a telephone interview.
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.
Platinum has shed more than 65 percent of its value since
its March peak.
Spot platinum <XPT=> was at $822 an ounce, up 2.3 percent
from its previous finish at $803.50, while sister metal
palladium <XPD=> was at $175.50, 2 percent higher than
Tuesday's late quote of $174.
Among other precious metals, spot silver <XAG=> was at
$10.21, which was 4.4 percent higher than its Tuesday close of
$9.79.
(Reporting by Frank Tang; Editing by Marguerita Choy)
