* Dollar in doldrums after Thursday's dip; oil near $73/bbl
* South African union rejects Anglo Platinum wage offer
(Releads, updates prices, adds comment)
By Jan Harvey
LONDON, Aug 28 (Reuters) - Gold prices hit a three-week high
above $960 an ounce in Europe on Friday as buying linked to the
weaker dollar pushed the metal through technical resistance.
Spot gold <XAU=> hit a high of $961.00 an ounce, its
firmest level since Aug. 7, and was bid at $956.60 an ounce at
1307 GMT, against $946.75 an ounce late in New York on Thursday.
"In the near term is it still predominantly the currency
that is in the driving seat," said Saxo Bank senior manager Ole
Hansen.
"That has managed to tip (gold) through a technical level
where new buying and short covering has been triggered this
morning, and that has given us a bit of momentum on the upside."
Prices rose earlier in the day after heavy selling of the
dollar late on Thursday, particularly against the Swiss franc,
knocking the U.S. currency to multi-week lows versus the euro.
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. Gold was also being bought
as an alternative asset to the falling dollar.
"We touched these highs yesterday in the euro-dollar, and we
haven't really come back from that," said Hansen. "The euro has
elevated to slightly higher levels now, and that has given
(gold) the support that's needed now to test higher."
The U.S. currency was little changed on Friday versus a
currency basket. U.S. gold futures for December delivery <GCZ9>
on the COMEX division of the New York Mercantile Exchange rose
$11.20 or more than 1 percent to $958.50 an ounce. []
Oil meanwhile climbed after Thursday's better-than-expected
U.S. GDP and jobs data boosted interest in nominally higher-risk
assets like equities and commodities. []
SILVER RISES
Silver was also helped by gains in base metals, with copper
up more than 4 percent. Silver, also used as an industrial
metal, rose to $14.47 an ounce from $14.24. []
On the wider markets, European shares rose more than 1
percent on Friday, while U.S. stock futures pointed to a rise on
Wall Street. [] []
Indian gold demand eased, meanwhile, after local prices rose
above 15,000 rupees per ten grammes. []
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. []
Elsewhere platinum <XPT=> was supported 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. []
Platinum <XPT=> was at $1,245 an ounce against $1,240.50,
and palladium <XPD=> was at $287 against $284. South Africa is
the source of four-fifths of the world's platinum.
The National Union of Mineworkers said Implats, the world's
number two platinum producer, had failed to secure a court order
to stop the strike. Some workers at its Rustenburg mine have
been on strike since Wednesday. []
The NUM also 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 capacity 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 Keiron Henderson)
