* Dollar pares losses against currency basket
* Implats CEO says may dismiss striking workers
* Aquarius lays off 3,900 strikers in SAfrica
(Releads, updates prices)
By Jan Harvey
LONDON, Aug 27 (Reuters) - Gold steadied in Europe on
Thursday, giving up earlier gains, as the dollar rolled back
losses against a basket of currencies, tempering interest in the
precious metal as an alternative asset.
Platinum prices inched higher, 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 <AQP.AX> laid off 3,900 strikers. []
Spot gold <XAU=> was bid at $944.05 an ounce at 1436 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 eased 50 cents to $945.40.
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>, which measures the U.S. unit's
performance against a basket of six other currencies, was flat
on Thursday, rolling back earlier losses. []
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.
Wall Street fell on Thursday, weighed by energy stocks after
a fall in oil prices. [] The U.S. economy shrank less than
expected in the second quarter and fewer workers filed new
claims for unemployment benefits last week. []
On the physical side, 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. []
STRIKES EYED
Among other precious metals, silver <XAG=> was at $14.16 an
ounce against $14.30. Platinum <XPT=> was at $1,238 an ounce
against $1,232, while palladium <XPD=> was at steady at $284 an
ounce.
The platinum group 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 reacted significantly 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 Sue Thomas)
