* Dollar holds steady against currency basket
* Implats CEO says may dismiss striking workers
(Releads, updates prices)
By Jan Harvey
LONDON, Aug 27 (Reuters) - Gold ticked higher in Europe on
Thursday as the dollar weakened slightly against a basket of
currencies, with the metal awaiting direction from foreign
exchange markets in the absence of strong external drivers.
Platinum prices were little changed but supported at the
lower levels by a wage dispute at South Africa's Impala Platinum
<IMPJ.J> whose chief executive said on Thursday that thousands
of striking workers could be sacked. []
Spot gold <XAU=> was bid at $946.15 an ounce at 1115 GMT,
against $944.10 an ounce late in New York on Wednesday. U.S.
gold futures for December delivery <GCZ9> on the COMEX division
of the New York Mercantile Exchange firmed $1.80 to $947.60.
With physical buying lacklustre during the traditional
summer lull, and little fresh supply and demand news reaching
the market, gold remains tied to the dollar, analysts said.
"Gold has no life of its own at the moment -- it is only
mirroring the dollar moves," said Commerzbank analyst Eugen
Weinberg. "If you look at the price in euro terms, it has been
trending around the average for some months now."
He said prices were likely to remain rangebound until an
expected pick-up in investment and jewellery demand this autumn.
The dollar index <.DXY>, which tracks its movements against
six major currencies, edged lower as the U.S. unit slipped
against the yen. []
Gold trades in a close inverse relationship with the dollar,
as it is often bought as an alternative asset to the U.S.
currency. It also becomes cheaper for holders of other
currencies when the dollar is weak.
Oil prices, another key driver of gold, which is often seen
as an inflation hedge, slipped below $71 a barrel after touching
a 10-month high earlier this week. []
On the wider markets, European shares edged higher after
weakness in Asian equities overnight, with investors still
relatively cautious on the economic outlook. []
BARGAIN HUNTING
In the physical market, Indian gold traders picked up some
bargains, with buying coming through as prices slipped to a
session low below $940 an ounce on Wednesday. []
In New York, holdings of the world's largest gold
exchange-traded fund, the SPDR Gold Trust <GLD>, were steady at
1,061.83 tonnes. []
Miner Peter Hambro <POG.L> said gold output was set to reach
its full-year target of 500,000 ounces after hitting 222,600
ounces in the first half. [].
Among other precious metals, silver <XAG=> was at $14.23 an
ounce against $14.30. Platinum <XPT=> was little changed at
$1,230 an ounce against $1,232, while palladium <XPD=> was at
$283 an ounce against $284.
The metals are being underpinned by strike action at Impala
Platinum's Rustenburg mine in South Africa, where more than
20,000 workers have been striking since Monday over wages.
Implats chief executive David Brown said on Thursday the
company could carry out mass dismissals of striking workers. The
action is cutting output, he said, as the company does not hold
a "significant amount" of ore stocks.
Platinum prices have not yet significantly reacted to the
news. Analysts say a lack of demand for the autocatalyst metal
this year has made the market less sensitive to supply outages.
"Platinum appears comfortable in the current $1,218-75
range, although we will look to see how wage negotiations in
South Africa develop," said TheBullionDesk.com analyst James
Moore in a note.
(Reporting by Jan Harvey; Editing by Peter Blackburn)
