* Gold firms but off intraday highs, platinum tumbles
* Stronger oil supports, but higher dollar caps gains
* Platinum drops almost 4 pct on demand woes
(Recasts, updates comments and prices, pvs SINGAPORE)
By Humeyra Pamuk
LONDON, Sept 1 (Reuters) - Gold eked out gains on Monday,
supported by rising oil prices ahead of hurricane Gustav, but a
strong dollar capped bullion's rise,
Platinum tumbled almost 4 percent as poor car sales and a
slowing U.S. economy weighed on the metal, which has tumbled
nearly 40 percent since hitting a lifetime high of $2,290 an
ounce, in March.
Sister metal palladium also dropped, while silver tracked
gold higher. Volumes are expected to be thin as the U.S. markets
are shut for the Labor Day holiday.
Gold <XAU=> rose to $832.00/834.70 an ounce by 0938 GMT from
$830.35/832.35 an ounce late in New York on Friday, when it
slipped more than $1 on profit taking.
"You have two opposing forces," said analyst Robin Bhar at
Calyon said. "Gold will track the oil price almost a dollar for
dollar but will also be capped by the strength in dollar," he
said.
Oil prices rose more than $1 after energy firms in the U.S.
Gulf shut down nearly all offshore oil output and a host of
flood-prone coastal refineries ahead of Hurricane Gustav, the
biggest threat since 2005's devastating Katrina.
Higher oil prices boost gold's appeal as a hedge against the
inflation while a stronger U.S. dollar makes it more expensive
for local currency holders.
The dollar index crept towards an eight-month high while the
U.S. currency rose against sterling to its highest level in more
than two years.
"This is just a broad consolidation of gold. There's
resistance around $840-850 an ounce. It will struggle to make
much headway," he said.
SLOW DEMAND
Spot platinum <XPT=> fell as low as $1,418.50 an ounce, down
from $1,474.50/1,494.50 in New York, with technical selling. The
metal was last at $1,441/1,461.
"I think the demand is slow right now. There are still
worries about the global economy, that's why they don't want to
buy too much for the being," said Dick Poon, manager of precious
metals at Heraeus Ltd. in Hong Kong.
The bulk of the world's platinum is used by automakers in
autocatalyst systems that scrub exhaust fumes of dangerous and
environmentally damaging chemicals.
A sudden slowdown in car sales in China and India is
threatening to shrink the global auto market this year, spelling
tougher times for an industry leaning on the two most populous
countries to pick up the slack in the West. []
Analysts say jewellery demand has helped gold to rally back
from its nine-month lows of around $773 an ounce in mid-August,
but the yellow metal still trades way below its all-time high of
$1,030.80 an ounce, hit in March.
"The first two weeks of August saw 60,000 gold coins sold in
the U.S. The U.S. mint describes the activity as unprecedented
as new retail investors enter the market," said Meridian Fund
Managers in a research note.
"India's festival season begins next week and should provide
strong support to the price of the commodity throughout the
fall," it said.
Spot palladium <XPD=> eased to $300/308 an ounce from
$303.00/341.00 an ounce. Silver <XAG=> firmed to $13.67/13.72 an
ounce from $13.58/13.68 an ounce late in New York.
Precious metals prices at 0937 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 833.30 3.50 +0.42 0.07
Spot Silver 13.72 0.14 +1.03 -7.11
Spot Platinum 1437.00 -39.50 -2.68 -5.46
Spot Palladium 301.00 -1.50 -0.50 -18.21
TOCOM Gold 2910.00 -34.00 -1.15 -4.90 32728
TOCOM Platinum 4939.00 -136.00 -2.68 -7.49 24919
TOCOM Silver 479.10 -6.80 -1.40 -11.44 783
TOCOM Palladium 1070.00 15.00 +1.42 -20.80 1118
Euro/Dollar 1.4650
Dollar/Yen 107.87
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Toby Chopra)
