* Dollar in doldrums after Thursday's dip; oil above $73/bbl
* South African union rejects Anglo Platinum wage offer
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, Aug 28 (Reuters) - Gold rose above $950 an ounce in
Europe on Friday after heavy selling of the dollar late in the
previous session boosted interest in the metal as an alternative
asset, with rising oil prices also lending support.
Spot gold <XAU=> was bid at $951.85 an ounce at 0922 GMT,
against $946.75 an ounce late in New York on Thursday. U.S. gold
futures for December delivery <GCZ9> on the COMEX division of
the New York Mercantile Exchange rose $6.20 to $953.50 an ounce.
Platinum <XPT=> fell, but losses were limited by a strike at
South Africa's Impala Platinum <IMPJ.J> and news that a union
had rejected the latest wage offer from Anglo Platinum <AMSJ.J>,
the world's largest producer of the metal.
The U.S. currency dropped sharply versus the euro and others
during New York trade in response to rising equity markets and
recovering oil prices, pushing gold above $950 an ounce. It was
little changed early on Friday.
"The euro performance of late last night and therefore the
performance of gold after COMEX hours took the market by
surprise, and this morning the market is looking for a test of
$955," said Afshin Nabavi, head of trading at MKS Finance.
He added, however, that gold was still caught firmly in a
broader range between $930-960.
The dollar index <.DXY>, which measures the U.S. unit's
performance against six major currencies, was little changed on
Friday as it failed to hold earlier modest gains. []
Gold typically moves in a close inverse relationship with
the dollar, as it becomes cheaper for holders of other
currencies as the U.S. unit softens.
RISK APPETITE CLIMBS
Oil meanwhile climbed above $73 an ounce, boosted by
better-than-expected U.S. GDP and jobs data in the United
States, which has fuelled interest in assets seen as higher
risks, such as equities and commodities. []
Base metals also climbed, with copper up more than 3
percent, helping fellow industrial metal silver, which rose to
$14.47 an ounce from $14.24. []
On the wider markets, European shares rose more than 1
percent on Friday as commodities shares were supported by higher
oil and metals prices, after gains in some Asian markets. []
Indian gold demand eased, meanwhile, after local prices rose
above 15,000 rupees per ten grams. More orders have been
received at $930-940 an ounce, suggesting physical buying will
support prices at those levels. []
Buying for exchange-traded funds was also lacklustre, with
the world's largest gold ETF, the SPDR Gold Trust <GLD>,
reporting no change in its holdings on Thursday. []
Platinum <XPT=> was at $1,237.50 an ounce against $1,240.50,
and palladium <XPD=> was at $285 an ounce against $284.50. The
metals have had some support by industrial action in South
Africa, source of four-fifths of the world's platinum.
A strike at the world's number two platinum producer, Impala
Platinum <IMPJ.J>, spread to another mine and hit output, the
company said. Some 20,000 workers at its Rustenburg mine have
been on strike since Wednesday. []
The National Union of Mineworkers said it had rejected the
latest wage offer from Anglo Platinum <AMSJ.J>, the world's
largest producer of the white metal. []
But a rise in platinum stocks after demand fell for the
autocatalyst material, news of production cuts from Toyota
earlier this week, and hopes industrial action will be resolved
quickly are limiting gains, analysts said. []
"The market reaction to these supply interruptions help
confirm our view that this is not an attractive tactical entry
point into new long platinum positions," said UBS analyst John
Reade in a note.
(Reporting by Jan Harvey; Editing by Sue Thomas)
