* Traders await U.S. PPI, retails sales data for November
* Euro heads for 4.5 percent weekly gain vs the dollar
(Updates prices, adds comment)
By Jan Harvey
LONDON, Dec 12 (Reuters) - Gold, platinum and palladium fell
on Friday in line with other commodities such as oil and
industrial metals as the collapse of a mooted deal to rescue
ailing U.S. carmakers knocked investors' confidence.
But gold recovered from lows as fears over the global
economic outlook underpinned interest in the metal as a haven
from risk, and the relative weakness of the dollar was also
supportive, analysts said.
Spot gold <XAU=> was quoted at $817.10/819.10 an ounce at
1351 GMT, down from $818.35 an ounce on Thursday. However, it
was well off an earlier low of $807.00 an ounce.
U.S. gold futures for February delivery <GCG9> were down
$8.10 at $818.50 an ounce.
"I think there still enough safe haven buying out there to
hold gold up here," said Wolfgang Wrzesniok-Rossbach, head of
sales at precious metals trading house Heraeus.
"That is also supported by the generally weaker dollar."
A softer dollar tends to benefit gold, which is often bought
as an alternative investment to the U.S. currency.
The euro matched a seven-week high against the dollar of
$1.3407 on EBS earlier in the session. It has gained 4.5 percent
against the dollar this week. []
Gold slipped along with other commodities such as oil and
base metals after the failure of a mooted $14 billion plan to
aid U.S. carmakers. The U.S. House of Representatives had agreed
to the bailout, but the plan could not get through the Senate.
The bailout's failure, for this year at least, raised fears
of an industry collapse that could threaten countless jobs, with
uncertainty filtering through to the financial markets, sending
investors fleeing from risky assets. []
Oil prices fell by more than 7 percent, and industrial
metals tumbled, with copper and nickel prices sliding by more
than 5 percent each. []
PLATINUM, PALLADIUM SLIDE
Equity markets also fell in Europe and Asia, while U.S.
stock index futures plummeted as major automakers, including
General Motors <GM.N>, were knocked by the collapse of the
rescue deal. []
Falling equities may continue to pressure gold, which can be
sold to raise liquidity to cover losses on other markets,
analysts say.
"Everything is lower overnight, the platinum group metals in
particular, on the news that the Senate had thrown out the car
company bill," Commerzbank trader Rory McVeigh said.
Platinum fell nearly 3 percent and palladium lost more than
5 percent as traders worried about the outlook for demand from
carmakers, who consume about half of global supply of the two
metals each year.
Troubles in the automotive sector have already knocked
platinum and palladium down some 65 percent and 70 percent
respectively from this year's highs reached in March.
Spot platinum <XPT=> fell to a session low of $793 an ounce,
and was later at $801.50/821.50 an ounce against $826. Palladium
<XPD=> was at $167/175 an ounce against $177.
Spot silver <XAG=> was at $10.15/10.23 an ounce, down from
$10.30.
(Editing by Sue Thomas)
