* Dollar little changed vs euro, keeps gold in tight range
* Strike threat at Impala Platinum in South Africa
(Updates prices, adds comment)
By Jan Harvey
LONDON, Aug 20 (Reuters) - Gold was steady near $940 an
ounce on Thursday as the dollar trod water versus the euro, with
fears over industrial and jewellery demand curbing appetite for
the precious metal.
Prices gave up earlier modest gains as U.S. stock futures
turned negative after weekly jobless claims data showed the
number of new workers filing for unemployment benefits in the
United States rose last week. []
Spot gold <XAU=> was bid at $940.10 an ounce at 1311 GMT,
against $941.55 an ounce late in New York on Wednesday. Earlier
it rose as high as $945.60 an ounce.
"If you look at the euro/dollar today, you have less than a
half-a-cent trading range, and this is reflected in the
relatively quiet business in gold," said Wolfgang
Wrzesniok-Rossbach, head of sales at Heraeus.
"There is still investment demand for physical gold... but
on the other side the industrial business and the jewellery
business is pretty dead," he said. "This is what is dampening
the whole (market) at the moment."
The dollar was little changed against the euro <EUR=> as
traders awaited direction from U.S. data later in the session.
The U.S. currency typically has a close negative correlation
with gold, which is often bought as an alterative asset. []
Traders are awaiting direction from the Philadelphia Federal
Reserve's business activity index, which will give clues on the
state of the U.S. economy later in the session.
On the wider markets, European stocks rose after Chinese
shares surged more than 4 percent, though U.S. stock futures
turned negative after the weekly jobless data, denting appetite
for commodities. Oil prices were flat. [] [] []
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange eased $3.10 to
$941.60 an ounce.
Investors remain jittery about demand after a report from
the industry-funded World Gold Council on Wednesday showed a 9
percent drop in second-quarter demand, largely on a fall in
jewellery buying.
DEMAND ABATES
Gold demand in India, the world's biggest bullion consumer
last year, abated as domestic prices rose. A dealer at an Indian
private bank said clients were looking at $930 an ounce to buy.
Holdings of the largest gold exchange-traded fund, the SPDR
Gold Trust <GLD>, were unchanged for a sixth straight session on
Wednesday, the trust said on its website. []
Among other precious metals, silver rose more than 1 percent
as base metals rallied. The grey metal is widely used in
industry as well as being an investment asset. []
Spot silver <XAG=> was at $13.83 an ounce against $13.79.
Elsewhere platinum <XPT=> was at $1,239 an ounce against
$1,234.50, while palladium <XPD=> was at $271 against $270.
The main South African miners' union said on Wednesday it
will strike next week at number two platinum miner Impala
Platinum. Implats said it hopes for further talks. []
"We doubt the strikes can last long: firstly, workers don't
get paid if they strike. Secondly, miners are under financial
pressure, and more financial pressure could see more workers
being laid off," said Standard Bank in a note.
"Both reasons don't favour workers' interests."
Anglo-South African investment bank Investec said it sees
average platinum prices at $1,250 an ounce in 2009 as a whole,
rising to $1,350 an ounce next year and $1,400 in 2011.
"Demand for platinum group metals has been negatively
affected by the slowdown in the global motor industry. However,
there are signs of the auto market stabilising and of an end to
the de-stocking process," the bank said in a note.
(Editing by James Jukwey)
