* Dollar weakens vs currency basket as U.S. stocks firm
* Largest gold ETF reports fresh 2.13-tonne outflow
(Releads, updates detail of Harmony mine closure)
By Jan Harvey
LONDON, July 22 (Reuters) - Gold edged above $950 an ounce
on Wednesday as the dollar eased against a basket of currencies
and oil prices lifted from lows, but gains were capped by a
dearth of physical demand for the metal.
Spot gold <XAU=> was at $950.60 an ounce at 1507 GMT,
against $948.15 an ounce late in New York on Tuesday. U.S. gold
futures for August delivery <GCQ9> on the COMEX division of the
New York Mercantile Exchange were up $4.10 at $951.00 an ounce.
"We are stuck in a range," said Afshin Nabavi, head of
trading at MKS Finance in Geneva. "We have to break below $944
or above $955 in order to see some interest in the market."
The dollar <.DXY> edged lower versus a basket of six major
currencies on Wednesday as U.S. stocks rose. A weaker dollar
supports commodities priced in the U.S. unit, such as gold, as
it makes them cheaper for holders of other currencies. []
Oil also lifted from lows after falling below $65 a barrel
in earlier trade, as a surprise rise in U.S. crude stocks
pressured prices. U.S. stock markets opened weaker, but soon
pared losses to turn higher. [] []
Standard Bank analyst Walter de Wet said $960 an ounce was
proving to be a major resistance level for gold prices."I would
look towards the dollar for any major moves in gold," he said.
"Our view for currencies is that the euro will reach $1.50
towards the end of the year. If that is going to be the case, I
don't think $960 is going to hold as a strong resistance."
Gold last stood above $960 in early June.
SOFT DEMAND
The world's largest gold exchange-traded fund recorded a
further outflow on Tuesday. The fund, New York's SPDR Gold Trust
<GLD>, has sold nearly 39 tonnes of gold in the last four weeks,
equal to almost 3.5 percent of its total holdings. []
Jewellery demand in India, the world's largest gold
consumer, remained slack as buyers awaited lower prices, while
jewellers in Thailand cashed in their bullion on Wednesday after
prices broke through $950 an ounce.
Ronald Leung, director of Lee Cheong Gold Dealers in Hong
Kong, said buying had been muted since gold hit five-week highs
earlier this week. "Maybe people think the stock market is more
attractive," he said. []
Among other precious metals, silver <XAG=> was at $13.61 an
ounce against $13.54, platinum <XPT=> was at $1,170.50 an ounce
from, $1,169, and palladium <XPD=> was at $254.50 from $253.50.
Impala Platinum <IMPJ.J>, the world's number two platinum
miner, closed parts of its Rustenburg mine in South Africa after
an accident killed nine workers. []
Harmony Gold <HARJ.J> said it has shut the Unisel shaft at
its Virginia mine after a fatality, and will lose 8 kilograms of
production as a result. []
Elsewhere in South Africa, gold producers raised their pay
offer for miners on Tuesday, averting possible strike action for
now, according to the mineworkers' union. []
South Africa was the world's number three gold miner in 2008
after China and the United States, metals consultancy GFMS said.
(Reporting by Jan Harvey; Editing by William Hardy)
