* Firming dollar, easing oil, pressure gold lower
* Precious metals seen treading water until key U.S. data
* Platinum slips 2.5 percent on fears over U.S. economy
(Recasts, updates throughout, changes dateline, pvs SINGAPORE)
By Jan Harvey
LONDON, Aug 1 (Reuters) - Gold slipped in Europe on Friday
as weaker oil prices and a slightly firmer dollar dampened
buying interest, but trading was cautious ahead of key U.S.
non-farm payrolls data later in the session.
Platinum dropped up to 2.5 percent after U.S. economic data
came in weaker than expected on Thursday, fuelling fears slowing
growth could dent demand for the industrial metal.
Gold <XAU=> fell to $909.20/910.20 an ounce at 0932 GMT from
$913.45/914.65 an ounce late in New York on Thursday, when it
posted a volatile session, trading in a wide $20 range.
"I would suspect that we will see (gold) staying around
these levels until the data comes out," Standard Bank analyst
Walter de Wet said.
U.S. July non-farm payrolls data is due out at 1230 GMT.
Economists polled by Reuters estimated 75,000 jobs were lost in
the month, compared to 62,000 in June.
"The U.S. labour market report often leads to wide swings,"
Dresdner Kleinwort consultant Peter Fertig noted.
The data is expected to have a significant impact on the
dollar as well as the broader markets. The dollar moved towards
a one-month high against the euro early on Friday ahead of the
report.
Gold is typically pressured by a stronger dollar, which
reduces the precious metal's appeal as a currency hedge, as well
as making it more expensive for holders of other currencies.
[]
A dip in crude prices is also pressuring gold. New York
crude futures slipped by more than $1 on Friday amid fears U.S.
demand may fall. []
A high oil price is a key precursor of rising inflation,
against which gold is often bought as a hedge. A softening of
inflation fears in recent weeks has been a key factor pushing
prices lower.
"The fear of inflation isn't quite as prominent as it was
two months ago," Commerzbank trader Rory McVeigh said.
"People are looking at the global economic outlook, and it
appears to be more controlled now," he added.
Weaker oil undermines interest in commodities as an asset
class, analysts say.
SOFT PHYSICAL DEMAND
From a demand perspective, call for physical gold has been
weak in recent months as high and volatile prices discourage
buying, coupled with seasonal factors.
Turkey, one of the world's top three gold consumers, said
its imports of the precious metal fell to 10.7 percent in July
from 45.7 tonnes a year before, and were down 42 percent in the
first seven months of the year. []
Platinum prices slipped 2.5 percent as softer-than-expected
U.S. data out on Thursday fuelled fears of a slowdown in
economic growth.
Platinum, a key component in autocatalysts, is heavily
reliant on the car industry to support demand. Any slowdown in
economic growth, as indicated by Thursday's soft second-quarter
U.S. GDP data, tends to pressure the metal.
Spot platinum <XPT=> fell to $1,712.50/1,732.50 an ounce
from $1,749.50/1,769.50 late in New York. Earlier it touched a
session low of $1,704.50.
Among other precious metals, spot palladium <XPD=> fell to
$371.50/379.50 an ounce from $379.50/387.50 late in New York.
Silver <XAG=> edged down to $17.50/17.57 an ounce from
$17.71/17.77 late in New York.
(Reporting by Jan Harvey; Editing by Michael Roddy)
