* Gold holds in range, awaits direction from currencies
* Traders eye U.S. jobs data due later in the session
* ETFS Physical Palladium holdings rise to record
(Updates throughout, changes dateline-pvs TOKYO)
By Jan Harvey
LONDON, Sept 2 (Reuters) - Gold prices held near $955 an
ounce in Europe on Wednesday, supported by a dip in the dollar
index ahead of key U.S. economic data due later, which is
boosting interest in the precious metal as an alternative asset.
However, losses on equity markets after Wall Street's
sell-off on Tuesday is reducing appetite for nominally
higher-risk assets like commodities, with which gold is often
grouped in so-called baskets for trading purposes, analysts
said.
Spot gold <XAU=> was bid at $955.20 an ounce at 0853 GMT,
against $955.85 an ounce late in New York on Tuesday. U.S. gold
futures for December delivery <GCZ9> on the COMEX division of
the New York Mercantile Exchange were up 10 cents at $956.40.
"The U.S. dollar has fallen back and gold has rebounded,"
said David Thurtell, an analyst at Citigroup. "I think the
Chinese don't want a strong dollar, and they seem to be buying
the euro, (which is) gold supportive."
The dollar index <.DXY>, which measures the U.S. unit's
performance against a basket of six major currencies, weakened
in early trade as the yen hit a seven-week high versus the
dollar. []
Oil prices inched higher after Tuesday's hefty 3 percent
slide, following industry data that showed a sharp fall in U.S.
crude stocks. Gold prices often track moves in crude oil, as the
metal can be bought as a hedge against inflation. []
On the wider markets, European stocks dipped in early trade,
tracking losses in Asia overnight and on Wall Street on Tuesday,
denting appetite for risk. [] [] []
Traders are awaiting key U.S. data due later, including the
ADP and Challenger jobs reports, which are seen as an important
precursor to non-farm payrolls number due Friday.
"There will be more volatility towards the end of the week
amid multiple data releases, and especially the U.S. non-farm
payroll numbers for August," said VTB Capital analyst Andrey
Kryuchenkov.
SILVER FALLS
Among other precious metals, silver declined, weighed by a
fall in base metals like copper after the equity slide. Spot
silver <XAG=> was at $14.92 an ounce against $15.04.
Silver, which is widely used in industrial processes such as
electronics manufacturing, is sensitive to moves in the
industrial metals. []
Elsewhere platinum <XPT=> was at $1,208 an ounce against
$1,224.50, while palladium <XPD=> was at $283 against $287, both
pressured by profit taking and a dearth of fresh news on South
African strikes.
Talks began on Tuesday between Impala Platinum <IMPJ.J> and
South Africa's mine workers' union aimed at ending a week-long
strike over wages. []
Concern grew last week that mining in South Africa, source
of some 80 percent of the world's platinum, could be widely
affected after workers at Anglo Platinum, the number one
producer, rejected a pay offer.
Meanwhile ETF Securities said holdings of its palladium
exchange-traded commodity <PHPD.L> rose 2.6 percent to a record
of nearly 400,000 ounces on Sept.1.
ETCs issue securities backed by physical stocks of a
precious metal. Palladium prices hit a year-high of $291.50 an
ounce on Tuesday.
"ETF investors added a further 9,900 ounces of palladium
yesterday with further chart support expected around $282," said
James Moore, an analyst at TheBullionDesk.com.
"The scale of speculative longs remain a concern, however.
The metal still has the potential to test the $296-305 area."
(Reporting by Jan Harvey; Editing by Anthony Barker)
