* Markets await direction from U.S. earnings
* Firm dollar keeps a tight rein on gold
(Updates prices)
By Jan Harvey
LONDON, July 17 (Reuters) - Gold eased in Europe on Friday
as the firmer dollar weighed on prices, with traders awaiting
further U.S. corporate results due later in the session to give
direction to the markets.
Spot gold <XAU=> was bid at $933.90 an ounce at 1110 GMT,
against $936.35 an ounce late in New York on Thursday. U.S. gold
futures for August delivery <GCQ9> on the COMEX division of the
New York Mercantile Exchange fell $1.10 to $934.30 an ounce.
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. []
"During U.S. time, we ought to have some movement," said
Afshin Nabavi, head of trading at MKS Finance in Geneva. "The
current trading range is $930-940. A break above $940 should
take us to the major resistance of $950."
On the wider markets, U.S. stock futures fell after General
Electric's second-quarter results, pointing to a lower opening
on Wall Street. European shares rose for a fifth consecutive day
on Friday, however. [] []
Shares of Bank of America <BAC.N> rose in premarket trading
after the company reported its second-quarter results. Traders
are still awaiting numbers from Citigroup <C.N> later in the
session.
Oil slid 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 $13.16 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 $1,163.50
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)
