* Dollar slips against the euro after U.S. GDP data
* Oil prices slide 5 percent after near-10 pct gain
* U.S. equities open higher, European stocks tick up
(Recasts after U.S. GDP data, adds comment, updates prices)
By Jan Harvey
LONDON, Nov 25 (Reuters) - Gold recovered on Tuesday,
rolling back earlier 2 percent losses, as the dollar slid for
the third consecutive session against the euro after data showed
that U.S. GDP shrank more than expected in the third quarter.
But falling crude prices are continuing to pressure the
market, analysts said.
Spot gold <XAU=> was at $816.10/818.10 an ounce at 1546 GMT,
down from $819.55 an ounce in New York late on Monday but well
above its session low of $801.80.
"After the release of GDP figures we saw the euro spike
higher against the U.S. dollar, and gold spike higher," said
Dresdner Kleinwort consultant Peter Fertig. "It was definitely
in line with the move in the euro that gold rallied again."
The dollar fell against the single currency in early
afternoon trade after the release of third-quarter U.S. GDP data
which showed a larger than expected contraction in the U.S.
after a sharp drop in consumer spending. []
The commerce department revised the annual rate of decline
in third-quarter U.S. gross domestic product to 0.5 percent from
0.3 percent previously forecast. []
A weaker dollar boosts the precious metal's appeal as an
alternative investment.
Firmer equities are also supporting gold, as selling of the
precious metal to meet margin calls eases. U.S. stocks opened
higher and European shares climbed after the Federal Reserve
announced a plan to boost consumer lending. []
But falling oil prices are capping gold's gains. U.S. crude
futures slid more than 5 percent on Tuesday, undermining
interest in commodities as an asset class. [ID:nSP128607
Gold typically moves in line with crude prices, as it is
often bought as a hedge against oil-led inflation.
OUTLOOK SUPPORTS
Analysts are confident that with interest rates expected to
fall in a number of key countries and the economic outlook
uncertain, the precious metal will continue to be supported.
"All the easing that is going on at the moment in various
parts of the world, with central banks pushing cheap funds into
the market, is increasingly going to (affect gold)," said BNP
Paribas analyst Michael Widmer.
Among other precious metals, spot silver <XAG=> was at
$10.23/10.31 an ounce, against $10.47 in New York late on
Monday.
Spot platinum <XPT=> was steady at $855.50/875.50 an ounce
from $856, while its sister metal palladium <XPD=> was little
changed at $191.50/199.50 an ounce against $190.50.
All the platinum group metals have suffered from fears over
falling demand from the automotive sector, which accounts for
around half of global platinum and palladium consumption.
Rhodium, around 80 percent of which is used by the car
industry, slipped below $1,000 an ounce for the first time since
2004 as investors fretted over demand.
Rhodium <RHOD-LON> fell to $950 an ounce from $1,225 an
ounce on Nov 20.
"Demand for rhodium is absolutely dominated by the auto
industry - a quick glance at recent headlines and no-one should
be the slightest bit surprised that the metal is trading below
$1,000," said Mitsubishi precious metals strategist Tom Kendall.
"No-one should be surprised either if there is more downside
to come," he added.
(Reporting by Jan Harvey; editing by Peter Blackburn)
