* Markets await direction from U.S. earnings due later
* Firm dollar keeps a tight rein on gold
(Updates throughout, changes dateline-pvs TOKYO)
By Jan Harvey
LONDON, July 17 (Reuters) - Gold held steady below $940 an
ounce in Europe on Friday, with a firmer dollar capping gains,
as traders awaited a spate of U.S. corporate results due later
in the session to give fresh direction to the markets.
Spot gold <XAU=> was bid at $935.80 an ounce at 0915 GMT,
against $936.35 an ounce late in New York on Thursday.
"The markets are looking for results of Bank of America,
Citi and Merrill today," said Afshin Nabavi, head of trading at
MKS Finance in Geneva. "So during U.S. time, we ought to have
some movement."
"The current trading range is $930-940," he added. "A break
above $940 should take us to the major resistance of $950."
The dollar rose against the euro <EUR=> and versus a basket
of currencies <.DXY> as caution set into the markets ahead of
the U.S. earnings. []
U.S. stock futures pointed to a mixed opening on Wall
Street, with Dow Jones futures <DJc1> and S&P 500 futures both
easing, although European shares rose for a fifth consecutive
day on Friday. [] []
On the wider markets, oil fell below $62 a barrel and base
metals also declined, as traders turned away from industrial
commodities amid lingering concerns over the outlook for the
global economy. [] []
Demand for both investment gold and jewellery remained soft
during the summer lull.
Holdings of the largest gold exchange-traded fund, the SPDR
Gold Trust <GLD>, inched up 0.31 tonnes on Thursday. However,
London's ETF Securities said it saw an outflow of nearly 40,000
ounces that day from its ETFS Physical Gold <PHAU.L> product.
LOSSES RECOVERED
Elsewhere silver <XAG=> was at $13.21 an ounce against
$13.27. The metal has largely recovered the losses that took it
to a ten-week low on Monday, as a slip in the dollar lifted gold
prices and as investors took advantage of low prices to buy.
The largest silver ETF, iShares Silver Trust <SLV> saw
inflows of more than 42 tonnes earlier this week.
"Silver is our favourite metal from a bullish technical
perspective," said ScotiaMocatta in a note.
The ratio of gold to silver had moved down to 70.8 on
Friday, after rising to nearly 73 as silver slipped to its week
low on Monday. At the height of gold and silver's rally on June
3, it fell as low as 60.1.
Among other precious metals, platinum <XPT=> was at $1,166 an
ounce against $1,160.50, while palladium <XPD=> was at $245
against $245.50.
"Traders are keeping a close eye on wage negotiations in
South Africa after unions declared a dispute with power producer
Eskom, with strikes likely to disrupt metal supplies," said
James Moore, an analyst at TheBullionDesk.com.
Three South African trade unions declared a dispute Eskom
<ESCJ.UL> after failing to agree on a pay rise and benefits.
[]
(Reporting by Jan Harvey; Editing by Editing by Michael
Kahn)
