* Gold turns higher on weak dollar, better economic view
* Bullion price firmness indicated underlying uncertainty
* Platinum supported by strikes in top miner South Africa
(Recasts, updates with quotes, closing prices, adds NEW YORK
to dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Aug 27 (Reuters) - Gold futures ended
slightly higher Thursday on a weaker dollar and better equities
market amid improving overall economic sentiment, prompting
investors to buy precious metals across the board.
Platinum group metals also rose, supported by labor actions
and supply worries 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. []
The price of gold has been largely confined to a trading
range between $930 and $960 in the past three months, as the
metal was pressured by a resurgent dollar but supported by
long-term inflation worries and lingering economic
uncertainties.
Adam Klopfenstein, senior market strategist at
Chicago-based Lind-Waldock, said that gold was pressured by
market forces outside of the commodities sector, as the metal
has recently failed to rally on upbeat economic news.
However, the fact that gold was able to hold at
historically high levels underscored the metal's safe-haven
appeal amid uncertainties.
"If we see a sustained equites sell-off, that would be
another bullish factor in the gold," Klopfenstein said.
U.S. December gold futures <GCZ9> settled up $1.50 at
$947.30 an ounce on the COMEX division of the New York
Mercantile Exchange.
Spot gold <XAU=> was at $947.60 an ounce at 2:06 p.m. EDT
(1906 GMT), against $944.10 an ounce late in New York on
Wednesday.
With little fresh supply and demand news reaching the
market, gold, however, 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, turned
lower as Wall Street rebounded. []
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.
SAFRICA STRIKES EYED
Among other precious metals, silver <XAG=> was at $14.25 an
ounce against $14.30. Platinum <XPT=> was at $1,238.50 an ounce
against $1,232, while palladium <XPD=> was at $284.50, against
its previous session close at $284 an ounce.
The platinum group metals were 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.
Chief Executive David Brown said on Thursday the company
could carry out mass dismissals of striking workers. The work
action was cutting output, he said, as the company does not
hold a "significant amount" of ore stocks. []
Aquarius Platinum <AQP.AX> said it had dismissed 3,900
workers as a result of industrial action. []
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.
Close Change Pct 2008 YTD
Chg Close Pct Chg
US gold <GCZ9> 947.30 1.50 0.2 884.30 7.1
US silver <SIZ9> 14.251 -0.037 -0.3 11.295 26.2
US platinum <PLV9> 1240.50 2.10 0.2 941.50 31.8
US palladium <PAZ9> 286.75 -0.40 -0.1 188.70 52.0
Prices at 2:06 p.m. EDT (1806 GMT)
Gold <XAU=> 948.05 3.95 0.4 878.200 8.0
Silver <XAG=> 14.25 -0.05 -0.3 11.30 26.1
Platinum <XPT=> 1236.00 4.00 0.3 924.50 33.7
Palladium <XPD=> 283.50 -0.50 -0.2 184.50 53.7
Gold Fix <XAUFIX=> 943.00 2.50 0.3 836.50 12.7
Silver Fix <XAGFIX=> 14.200 -0.120 -0.8 14.760 -3.8
Platinum Fix <XPTFIX=> 1234.00 0.00 0.0 1529.00 -19.3
Palladium Fix <XPDFIX=> 285.00 0.00 0.0 365.00 -21.9
(Editing by Walter Bagley)
