* Gold slips below $1,190 as rising stocks limit investment
* Euro firms ahead of bank stress test results
* SAfrican mining directive eyed for impact on platinum
(Updates prices)
By Jan Harvey
LONDON, July 19 (Reuters) - Gold eased below $1,190 an ounce
in Europe on Monday, extending the previous week's 1.5 percent
fall, due to lower investment demand for the precious metal as
appetite for other assets improved.
Spot gold <XAU=> was bid at $1,189.55 an ounce at 1112 GMT,
against $1,193.10 late in New York on Friday. U.S. gold futures
for August delivery <GCQ0> rose $2.00 an ounce to $1,190.20.
"We are pivoting around $1,200 still, $15 either side," said
Saxo Bank analyst Ole Hansen. "Some of the risk premium that has
gone into gold, primarily from the banking worries we have had,
has been all but silenced for now, so that is removing a bit of
the support we have had previously."
"Liquidity is pretty poor, so it doesn't take much to move
this market," he added.
An improved appetite for assets seen as higher risk, like
equities and industrial commodities, has taken some of the wind
out of gold's sails in recent weeks.
European stocks recovered losses incurred after a Moody's
downgrade of Ireland, and turned higher on Monday, while copper
prices rose and oil climbed after early losses. [] []
[]
Gold has struggled to hold its ground since hitting a record
$1,294.90 an ounce in late June on concerns over euro zone
sovereign debt, which boosted interest in the metal as a hedge
against currency volatility.
Those fears have retreated, and in an indication of how far
they have receded the news that rating agency Moody's had
downgraded Ireland's sovereign bond ratings was largely ignored
by the gold market.
"It is not that the problems in Europe have gone away... but
the theme right now is the United States, the weaker data we had
from there last week and the subsequent move in the dollar,"
said Hansen.
"The fact that gold is not finding support from the weaker
dollar is a bit of a concern."
But as long as holdings of precious metals exchange-traded
funds remain firm, gold should remain supported, he added.
EURO FIRMS
Holdings of the world's largest gold exchange-traded fund,
New York's SPDR Gold Trust <GLD>, held at 1,314.211 tonnes on
Friday. They have slipped more than 6 tonnes in July so far, but
are still up more than 180 tonnes since the start of the year.
The euro firmed in early trade, shrugging off early losses
made after the Ireland downgrade, as traders awaited results of
bank stress tests. []
Platinum <XPT=> was at $1,508.50 an ounce against $1,509,
and palladium <XPD=> was at $453.50 against $446.78.
Aquarius Platinum <AQP.L>, the world's fourth-largest
primary platinum producer, said it will appeal against a
directive introduced by the principal inspector of the North
West region of South Africa on bord and pillar mining.
[]
In bord and pillar mining, miners extract material from
corridors, or bords, leaving material between the bords as
pillars holding up the roof.
The directive stipulates all mechanised bord and pillar
mines in the region must reduce the width of the bord to six
metres from 10 metres. Aquarius said it does not believe the
directive will result in fewer accidents.
"As the details become clearer and in turn the production
implications, this development has the ability to inject a South
African premium into the platinum price," said UBS analyst Edel
Tully in a note.
"Platinum's reaction so far has been limited in Europe. But
it's quite possible that the supply uncertainty alone could well
feed into a stronger platinum price as the week progresses."
Silver <XAG=> was at $17.76 an ounce versus $17.79.
(Reporting by Jan Harvey; Editing by Sue Thomas)
