* Struggles to break out of recent $930-$960 range
* SPDR holdings mark first rise since July
(Updates throughout, changes dateline from TOKYO)
By Kylie MacLellan
LONDON, Aug 24 (Reuters) - Gold was steady above $950 an
ounce on Monday, supported by higher oil prices and investor
demand but remaining rangebound as a firmer dollar and strong
resistance at $960 prevented any robust gains.
Spot gold <XAU=> was at $953.10 per ounce by 0956 GMT
against $952.65 an ounce late in New York on Friday.
"People buying gold as a hedge against inflation might be
doing so because of the higher oil price," said Robin Bhar,
analyst at Calyon.
Oil rose above $74 a barrel on Monday, extending its rally
to trade near a 10-month high, on optimism that an economic
recovery will spur a rebound in energy demand. []
Bullion hit a one week high on Friday as the dollar weakened
with strong U.S. housing sales data and upbeat comments from
Federal Reserve Chairman Ben Bernanke reducing the safe-haven
appeal of the U.S. currency.
But the dollar firmed on Monday, capping gold by making
dollar priced commodities more expensive for holders of other
currencies. []
Analysts said gold would continue to take its cue from
movements in the U.S. currency and oil prices over the coming
days, struggling to break through the upper end of its recent
$930 to $960 range.
"Investors still have an appetite for gold but the $960
resistance I think is going to be a pretty tough barrier," Bhar
added. "Gold will continue to struggle at these upper levels ...
for the moment it is probably capped around $960."
In a sign of improving risk appetite, European shares hit
their highest level in more than 10 months in early trade,
buoyed by renewed hopes that the global economic recovery is
gathering pace.
INVESTOR DEMAND
Gold also took support from a pick up in investor demand,
with holdings of the SPDR Gold Trust <GLD>, the world's largest
gold-backed exchange-traded fund, up 0.92 tonnes on Friday,
marking the first rise since July 16.
Its holdings stood at 1,066.41 tonnes on Friday, up from
1,065.49 tonnes the previous day -- the biggest one-day increase
since June 1, when the holdings rose by 15.27 tonnes to a record
of 1,134.03 tonnes. []
For a graphic on SPDR holdings, click on:
http://graphics.thomsonreuters.com/089/MKT_SPDR0809.gif
Among other precious metals, silver <XAG=> rose to 14.36 an
ounce compared with $14.15 and palladium <XPD> was unchanged at
$278.50.
Platinum <XPT=> dipped to $1,242 an ounce, from $1,251.
South Africa's National Union of Mineworkers said on Sunday
it had suspended an indefinite strike set to start on Monday at
the world's No. 2 platinum producer, Impala Platinum <IMPJ.J>,
which could have pushed up prices of the precious metal.
[]
"Platinum has run into profit taking after NUM members
accepted Impala's pay offer, averting strike action set to start
today," James Moore, analyst at thebulliondesk.com said in a
note.
(Editing by Sue Thomas)
