PRECIOUS-Gold dips below $950/oz as dollar firms

                                
 * Struggles to break out of recent $930 to $960 range
                                
 * SPDR holdings mark first rise since July
                                
 
 (Adds comment, updates prices)
                                
 By Kylie MacLellan
                                
 LONDON, Aug 24 (Reuters) - Gold edged below $950 an ounce on
Monday under pressure from a firmer dollar, but remained
rangebound as support from higher oil prices and investor demand
prevented it falling further.
                                
 Spot gold <XAU=> was at $949.80 per ounce at 1459 GMT
against $952.65 an ounce late in New York on Friday.
                                
 "The dollar is a key driver," said John Meyer, analyst at
Fairfax investment bank. "Investors will adopt a wait and see
attitude. Rather than just blindly following oil higher, they
will wait to see what the dollar will do."
                                
 Oil prices rallied to set a 10-month high of $74.81 a barrel
on Monday, supported by optimism that an economic recovery will
spur a rebound in global energy demand. [O/R]
                                
 Gold is often bought as a hedge against inflationary
pressures sparked by higher crude prices.
                                
 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 strengthened against a basket of currencies
on Monday, putting downward pressure on gold by making dollar
priced commodities more expensive for holders of other
currencies. [USD/]
                                
 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," said
Robin Bhar, analyst at Calyon. "Gold will continue to struggle
at these upper levels."
 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. [.EU]
                                
 
                                
 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. [GOL/SPDR]
                                
 For a graphic on SPDR holdings, click on:
                                
 http://graphics.thomsonreuters.com/089/MKT_SPDR0809.gif
                                
 Among other precious metals, silver <XAG=> rose to $14.32 an
ounce compared with $14.15 and palladium <XPD> was at $278.75
from $278.50.
                                
 Platinum <XPT=> fell to $1,233 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.
[ID:nLN232817]
                                
 "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)