* Gold ends higher as stocks weakens despite oil losses
* Dollar gains after stronger-than-expected U.S. data
* Platinum bounces off six-month low
(Recasts, updates with quotes, closing prices, market
activity, adds NEW YORK to dateline)
By Frank Tang and Raissa Kasolowsky
NEW YORK/LONDON, July 25 (Reuters) - Gold ended higher on
Friday as weakness from U.S. equities boosted bullion's
alternative investment appeal, despite pressure from lower oil
prices and a stronger dollar.
Spot gold <XAU=> was at $927.40/929.40 an ounce by New
York's last quote at 2:15 p.m. (1815 GMT), down from
$923.00/924.00 late in New York on Thursday.
In afternoon trade, U.S. stocks pared initial gains as
worries about financial stocks lingered, and that prompted
investors to switch funds to gold and other alternative
investment markets.
Andrew Montano, a director of precious metals at bullion
dealer ScotiaMocatta in Toronto said that initial selling was
seen after the dollar rose on stronger-than-anticipated U.S.
durable goods and new home sales data.
Montano also said that physical gold demand improved
somewhat as bullion prices dropped this week.
"We certainly have seen some physical off-take as prices
come down, more so than we have seen in recent weeks, but we
are in the slow season," Montano said.
Gold has dropped as much as $40 this week due to tumbling
oil prices and a higher dollar. Just last week, bullion had
moved within striking distance to the $1,000 mark.
U.S. gold futures for August delivery <GCQ8> settled up
$4.50 at $926.80 an ounce on the COMEX division of New York
Mercantile Exchange.
"Gold is still taking its lead from the external drivers of
currency movements and oil price movements," said Suki Cooper,
analyst at Barclays Capital.
The dollar rose against the yen on Friday after a
government report showing an unexpected rise in durable goods
orders and a stronger-than-expected U.S. consumer sentiment
reading for July eased worries over the U.S. economy.
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A stronger greenback usually pressures gold, which is often
bought as an alternative investment to the U.S. currency.
Oil <CLc1> fell $2 to seven-week low just above $123 a
barrel on Friday, extending a decline that has knocked more
than $20 off prices in two weeks. []
Gold typically moves in line with crude, as it is often
bought as a hedge against oil-led inflation.
PLATINUM
Platinum hovered just above a six-month low set on Thursday
when fears of weakening demand from car makers dragged down
prices.
Platinum prices have slipped sharply in the past two weeks,
and the precious metal is currently trading nearly 25 percent
below its March record high of $2,290 an ounce.
Spot platinum <XPT=> was at $1,746.00/1,766.00 an ounce
against $1,709.50.00/1,729.50 an ounce on Thursday. The metal
touched $1,701.50 an ounce, its weakest level since January 31,
on Thursday.
But palladium <XPD=>, which also touched a six-month low of
$371.50 on Thursday, traded lower in line with gold.
"Supply is very healthy for palladium, and even though
demand is still robust it doesn't have the same supportive
fundamentals as platinum to limit downside risk," Cooper said.
Spot palladium <XPD=> ended lower at $380.50/388.50 against
$382.00/390.00 late in New York on Thursday.
Among other precious metals, spot silver <XAG=> traded
slightly higher at $17.37/17.45 an ounce, against $17.34/17.40
on Thursday.
(Editing by Marguerita Choy)
