* Dollar firms against euro, extending Monday's gains
* Oil slips more than 2 pct, base metals fall
* India Nov gold imports dip to 35-40 tonnes vs 54 tonnes
(Recasts, adds comment, changes dateline, pvs SINGAPORE)
By Jan Harvey
LONDON, Dec 2 (Reuters) - Gold slipped in Europe on Tuesday,
extending the previous session's losses, as the dollar firmed
against the euro and oil prices sank to a 3-1/2 year low,
denting interest in the precious metal as an inflation hedge.
In addition, rising risk aversion is prompting a sell-off of
equities and commodities, while "safer" assets such as the yen
and government bonds are soaring.
Spot gold <XAU=> was quoted at $766.40/768.40 an ounce at
1000 GMT, down from $770.60 an ounce late in New York on Monday.
Gold is being pressured by an upturn in the dollar, which
firmed against the euro on Monday after weak euro zone
manufacturing data and on expectations for a rate cut from the
European Central Bank later this week.
The U.S. currency extended those gains on Tuesday.
"On Friday there was a break lower in the euro-dollar
exchange rate, and that was a sign that gold was about to come
off," said Societe Generale senior commodities strategist Jesper
Dannesboe.
"Gold came off on Monday, and euro-dollar is further down
now," he said.
Tumbling oil prices are also pressuring the precious metal,
which is often bought as a hedge against oil-led inflation.
Crude slipped to a 3-1/2 year low under $48 a barrel as
signs grew that the world economy is in worse shape than
previously feared, and after OPEC opted to defer an output cut.
[].
The price of other hard commodities such as copper and tin
were also lower. []
Equity markets also fell as risk aversion intensified. World
stocks slipped as investors worried about the prospect of a deep
global recession, while the yen and government bonds climbed.
[]
Investors are awaiting a spate of key data due out later
this week, culminating in U.S. non-farm payrolls numbers on
Friday, and interest rate decisions from central banks including
the ECB, for signs as to the next direction of trade.
"Investors should adopt a cautious strategy today and
monitor credit market developments," said Standard Bank analyst
Manqoba Madinane.
"Increased credit market tension could compromise precious
metal investment flows, which could mean yet further price
declines," he said.
Elsewhere, imports of gold into India -- the world's largest
bullion market -- slipped in November to around 35-40 tonnes
from 54 tonnes a year ago, the Bombay Bullion Association said.
[]
Among other precious metals, silver <XAG=> rose to
$9.34/9.42 an ounce from $9.26.
Platinum steadied after falling sharply on Monday in the
wake of weak Japanese car sales data, having ended that session
down 9 percent.
The metal is sensitive to a downturn in car demand, as it is
chiefly used as a component in catalytic converters. Traders are
keenly awaiting U.S. monthly car sales data due out later in the
session.
Spot platinum <XPT=> was little changed at $790/810 an ounce
against $790.50 an ounce late in New York on Friday, while its
sister metal palladium <XPD=> eased to $167.50/175.50 an ounce
from $171.50.
(Reporting by Jan Harvey; editing by Peter Blackburn)
