* U.S. markets close for Thanksgiving Day holiday
* Dollar weakens vs the euro but oil prices fall
* Gold largely unaffected by deadly attacks in Mumbai
(Updates prices)
By Jan Harvey
LONDON, Nov 27 (Reuters) - Gold inched higher in Europe on
Thursday as the weaker dollar supported prices, with trading
muted by the Thanksgiving Day holiday in the United States.
Bullion prices were unaffected by a spate of deadly attacks
by gunmen in Mumbai, despite gold's reputation as a haven from
geopolitical risk.
Spot gold <XAU=> was quoted at $814.65/817.65 an ounce at
1720 GMT, little changed from $811.75 an ounce late in New York
on Wednesday.
The dollar weakened against the euro on Thursday, rolling
back some of the previous session's gains, as
worse-than-expected U.S. economic reports renewed fears over the
prospect of a deepening global recession. []
A softer dollar tends to benefit gold, which is often bought
as a currency hedge. "If you think the U.S. dollar has peaked,
gold's outlook is good," said Citi analyst David Thurtell.
However, weakness in gold's other main external driver,
crude oil, is weighing on prices. Oil fell towards $53 a barrel
after U.S. stocks and oil demand data released on Wednesday
increased worries over falling consumption. []
The bullion market largely shrugged off news of the violence
in Mumbai, where more than 100 people have been killed and many
more remain trapped by gunmen. []
"You would expect that this could have (affected) gold but
there wasn't any buying or selling on the news," said Deutsche
Bank trader Michael Blumenroth.
OPEC MEETS
However, some support may come from a meeting of the
Organization of the Petroleum Exporting Countries in Cairo on
Saturday. Venezuelan oil minister Rafael Ramirez said OPEC may
agree to cut production at the talks.
"With all eyes on OPEC's extraordinary meeting on Saturday,
nobody wants to sell oil in case OPEC cuts production," Standard
Bank analyst Walter de Wet said.
"However, despite this threat, we believe crude will still
head down into year-end," he added. "Precious metals should
expect little support from crude oil."
Investor demand for bullion-backed exchange-traded funds
remains firm, with the world's largest gold ETF, the SPDR Gold
Trust <GLD>, reporting an inflow of just over 3 tonnes or half a
percent on Nov 26. []
Spot platinum <XPT=> was little changed at $852.50/872.50 an
ounce against $853.50 in New York late on Wednesday as the
weaker dollar lent support, while palladium <XPD=> slipped to
$186.50/194.50 an ounce from $189.50.
Both metals are suffering from a perception that demand from
auto manufacturers is likely to remain lacklustre. Carmakers,
who use the metals to make catalytic converters, account for
around half global platinum and palladium demand.
"Futures in Tokyo have fallen due to speculation of further
falling automotive sales, with local producer Mazda stopping
production for two days in December," said Fairfax analyst John
Meyer.
"Similar action is likely to be taking place at other auto
manufacturers around the world, although the cost of stopping
car production lines is extremely high," he added.
Among other precious metals, spot silver <XAG=> was at
$10.31/10.41 an ounce against $10.29.
(Reporting by Jan Harvey; editing by Peter Blackburn)
