* Dollar weakens against currency basket
* Implats CEO says may dismiss striking workers
* Aquarius lays off 3,900 strikers in SAfrica
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By Jan Harvey
LONDON, Aug 27 (Reuters) - Gold rose in Europe on Thursday
as the dollar weakened against a basket of currencies, boosting
interest in the precious metal as an alternative asset.
Platinum prices were little changed, but were supported by
wage disputes in South Africa, where Impala Platinum <IMPJ.J>
said on Thursday thousands of striking workers could be sacked,
and Aquarius Platinum laid off 3,900 strikers. []
Spot gold <XAU=> was bid at $947.25 an ounce at 1253 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 $2.80 to $948.60.
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.
"The only driver of gold appears to be the dollar," said
Calyon analyst Robin Bhar. "As we move into September and
October it is the Indian wedding season, and maybe some uptick
in physical buying will allow a bit of a breakout."
The dollar index <.DXY> fell 0.12 percent, pressured by
strength in the yen, though the U.S. unit pared losses against
the currency after U.S. GDP data showed the country's economy
contracted more slowly than expected in the second quarter.
[]
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, were steady around $71 a barrel after
touching a 10-month high earlier this week. []
On the wider markets, European shares turned negative after
the U.S. GDP and jobs data, while U.S. stock index futures were
flat ahead of the Wall Street open. []
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. []
Among other precious metals, silver <XAG=> was at $14.28 an
ounce against $14.30. Platinum <XPT=> was little changed at
$1,229.50 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.
Aquarius Platinum <AQP.AX> said it has dismissed 3,900
workers as a result of unprotected industrial action. It said
production at affected shafts will begin on Monday and ramp up
over two weeks while new employees are engaged. []
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.
"We continue to watch the strikes in South Africa," said
Standard Bank in a note. "We maintain that the current strike
action is not yet large enough to support a rally in the
platinum price."
(Reporting by Jan Harvey; Editing by Keiron Henderson)
