* Dollar in doldrums after Thursday's dip; oil near $73/bbl
* South African union rejects Anglo Platinum wage offer
(Updates prices, adds consumer sentiment data)
By Jan Harvey
LONDON, Aug 28 (Reuters) - Gold hit a three-week high above
$960 an ounce on Friday as buying linked to the weaker dollar
pushed the metal through technical resistance, before paring
gains after U.S. consumer sentiment data pressured the euro.
Spot gold <XAU=> hit a high of $961.00 an ounce, its
firmest level since Aug. 7, and was bid at $955.10 an ounce at
1434 GMT, against $946.75 an ounce late in New York on Thursday.
Prices rose 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.
"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."
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. unit was little changed on Friday versus a currency
basket, but lifted from lows against the euro after data showed
consumer confidence fell to its lowest in four months in August,
denting interest in currencies seen as higher risk. []
Oil climbed after Thursday's better-than-expected U.S. GDP
and jobs data boosted interest in nominally higher-risk assets
like equities and commodities. []
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange rose $9.70 to
$957.00 an ounce, off a high of $964.60. []
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 $14.70 an ounce from $14.24. []
On the wider markets, European shares rose more than 1
percent on Friday, while U.S. stocks were higher, though they
also pared gains after the consumer sentiment data. [] []
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 $1,242 an ounce against $1,240.50,
and palladium <XPD=> was at $286 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. []
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)
