* Oil, base metals swing higher after U.S. housing data
* Dollar pares gains versus the euro, Wall Street mixed
(Updates prices)
By Jan Harvey
LONDON, July 17 (Reuters) - Gold steadied on Friday,
reversing earlier losses, as oil prices swung higher and the
dollar pared gains against the euro, supporting interest in the
metal as a currency hedge.
Spot gold <XAU=> was bid at $938.80 an ounce at 1435 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 rose $3.50 to $938.90 an ounce.
The dollar index <.DXY>, which values the U.S. currency
against six others, was at 79.434, up 0.28 percent but off a
high of 79.661. []
"Most bullion moves have been largely currency driven and
the market is having to closely watch dollar index movement,
which seems to have been clinging on to the 79-80 support zone
for quite a while," said Richcomm Global Services senior analyst
Pradeep Unni.
"Any uptick in the dollar index would clearly mean gold
would have to give up its gains," he added.
Oil jumped more than 2.5 percent, meanwhile, after U.S. data
showed the housing sector was starting to stabilise, boosting
interest in the industrial commodities. Base metals prices also
swung higher. [] []
Firmer crude prices support interest in gold as a hedge
against oil-led inflation, and signal firm demand for
commodities as an asset class.
On the wider markets, U.S. stocks opened little changed as
upbeat housing data for June offset worries about the quality of
corporate profits from General Electric <GE.N> and Google <G.N>.
[]
But 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 $13.43 an ounce against
$13.27. The metal has largely recovered the losses that took it
to a 10-week low on Monday, as a slip in the dollar lifted gold
prices and investors took advantage of low prices to buy.
"Silver is our favourite metal from a bullish technical
perspective," ScotiaMocatta said in a note.
The ratio of gold to silver eased to 70.8 on Friday, after
rising to nearly 73 on Monday. At the height of gold and
silver's rally on June 3, it fell as low as 60.1.
Platinum <XPT=> was at $1,172 an ounce against $1,160.50,
having earlier reached its highest level since July 6, while
palladium <XPD=> was at $245 against $245.50.
In South Africa, source of four-fifths of the world's
platinum, the National Union of Mineworkers said it had rejected
an improved 8.5 percent pay increase offer from Impala Platinum
<IMPJ.J>. []
Three South African trade unions on Thursday declared a pay
dispute with utility Eskom <ESCJ.UL>. []
"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.
(Reporting by Jan Harvey; Editing by Michael Kahn)
