* Gold pares early gains as dollar firms
* Physical buying from India may offer support
* Nikkei up over 3 percent, oil steady
* Investors await outcome of G20 meeting
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Nov 14 (Reuters) - Gold slipped 1 percent on
Friday after posting its largest daily percentage gain in more
than a week the previous day, as the U.S. dollar turned higher
against the euro and spurred selling.
But firmer oil and equities could offer support around the
three-week low of around $700 an ounce struck on Thursday.
Dealers said they expected steady physical buying from India,
the world's main gold consumer, would also aid prices during
the traditional wedding season, which runs until early next
year.
Gold <XAU=> was trading at $727.40 an ounce, down $7.35
from New York's notional close. Gold fell to $700.25 on
Thursday before bouncing to a high of $736.75 on gains in
equities.
Trading was thin ahead of a weekend summit of
industrialised and emerging nations on the global financial
crisis, which has stirred fears of falling demand for
commodities and prompted investors to dump risky assets, even
including gold.
"The G20 meeting over the weekend will most likely create
another uncertainty andprompt short-term traders to square off
their positions before the weekend," said William Kwan, bullion
director at Gold Capital Management.
"Tonight's closing will be important for gold's stance next
week," he said.
The euro slipped to $1.2730 <EUR=> ahead of the G20
meeting, whose outcome was unlikely to offer much direction to
the currency market, said dealers. []
The Nikkei <> rose 3.4 percent on Friday after U.S.
shares rallied the previous day on bargain-hunting. []
"We can continue to expect volatility for some time to
come. I think the U.S. dollar very much is the driver still,"
said Darren Heathcote of Investec Australia in Sydney.
Gold, which hit an intraday high of $736 on Friday, has
laboured to sustain the uptrend since hitting a two-month high
of $931 in early October. It fell to an 11-month of $860.80
three weeks ago, partly due to losses in equities that forced
investors to cash in to cover losses.
"Despite gold's latest weakness and the possibility of
further breakdown, I believe we arenearing a turning point in
the tenor and direction of the market," said Jeffrey Nichols,
head of American Precious Metals Advisors.
"Before long, gold will begin a new and sustainable upward
march.Until then, with the yellow metal in the $700 to $730
range, and certainly at lower price levels, price-sensitive
demand from key Asian and Middle Eastern markets should
stabilise the market."
Demand for gold jewellery has picked up in India despite a
weakening rupee during the wedding season, when parents give
gold to their daughters for financial security. []
Despite buying from India, gold remained at the mercy of
the dollar's movements, said dealers.
"As we've seen $700 level already, there's nothing to say
we will get there again at this point. It's just really that
the dollar will be the deciding factor," said Heathcote of
Investec Australia.
Oil <CLc1> was steady around $58 a barrel, having jumped
almost 4 percent in previous session due to a rebound in equity
markets. []
New York gold futures <GCZ8> rose $23.9 an ounce to
$728.9.
Precious metals prices at 0557 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 727.40 -7.35 -1.00 -12.65
Spot Silver 9.19 -0.19 -2.03 -37.78
Spot Platinum 831.00 9.50 +1.16 -45.33
Spot Palladium 215.50 5.50 +2.62 -41.44
TOCOM Gold 2269.00 56.00 +2.53 -25.85
35588
TOCOM Platinum 2618.00 40.00 +1.55 -50.96
10918
TOCOM Silver 289.50 2.20 +0.77 -46.49
386
TOCOM Palladium 690.00 38.00 +5.83 -48.93
639
Euro/Dollar 1.2736
Dollar/Yen 97.06
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
