* Gold eases in quiet trade, traders eye next week's data
* Gold set for biggest gain since 1999 on safe haven buying
(Updates throughout, adds comment)
By Jan Harvey
LONDON, Nov 28 (Reuters) - Gold edged down on Friday as the
dollar firmed against the euro, but trading was quiet as
investors awaited the outcome of OPEC's production meeting this
weekend and a spate of data due next week for fresh impetus.
Spot gold <XAU=> was quoted at $810.00/812.50 an ounce at
1310 GMT, down from $814.60 an ounce late on Thursday, as the
firmer dollar dented interest in the metal as a currency hedge.
The euro slipped after data showed falling inflation in the
euro zone, boosting expectations the European Central Bank will
cut interest rates further. []
Falling oil prices are also doing little to help gold, which
typically moves in line with crude. Traders are awaiting the
outcome of this weekend's meeting of the OPEC oil cartel, at
which production cuts will be discussed. []
"Obviously there is still a correlation between oil and
gold," Wolfgang Wrzesniok-Rossbach, head of sales at Heraeus,
said. "If OPEC make a decision which might drive the oil price
up, that would also be positive for gold."
Despite the gold price dip, the precious metal is heading
for its biggest monthly gain in nine years as investors spooked
by the outlook for the global economy buy into the metal as a
haven.
Prices have climbed some $90 an ounce, or 12 percent, this
month. Gold is also up 12 percent in euro terms, and 15 percent
in terms of the Australian dollar.
"Investment (in gold) is strong because there is huge
concern over the economic and financial environment, both in the
short and possibly the longer term," RBS Global Banking &
Markets metals strategist Stephen Briggs said.
"The measures being taken to stabilise the situation may
lead to inflationary fears down the road, so gold has a double
benefit from that."
Gold is typically seen as a hedge against inflation.
DATA
Traders will also be watching for a raft of economic data
due out next week, which could have a significant impact on the
dollar. U.S. auto sales are due out on Tuesday, and U.S.
non-farm payrolls on Friday.
"Next week, manufacturing indices for all major economies
will be released," Standard Bank analyst Walter de Wet said.
"This should indicate the speed at which manufacturing is
contracting globally."
Dresdner Kleinwort said on Friday it expects gold prices to
average $870 an ounce this year, falling to $740 an ounce in
2009. For silver, it forecasts an average price of $15 an ounce
in 2008 and $9.75 next year.
But Wrzesniok-Rossbach at Heraeus said delegates at a forum
on Thursday organised by the precious metals group expected gold
prices to hit new highs next year.
"Consensus was that in the long run all the bailouts we are
seeing, whether in the car industry, the banking industry or
others ... will (create) inflation, and that would be positive
for gold," he said.
Among other precious metals, spot platinum <XPT=> was quoted
at $860.50/880.50 an ounce, slightly up from $853 late on
Thursday. Palladium <XPD=> was at $184/192 an ounce against
$187.50.
Silver was at $10.12/10.20 an ounce against $10.31 an ounce.
The industrial precious metals have suffered more from the
economic downturn than gold, with platinum and palladium, which
are chiefly used in catalytic converters, both dropping
significantly from their summer highs.
(Editing by Sue Thomas)
