* Gold holds in range, awaits direction from currencies
* Traders eye U.S. jobs data due later in the session
* Platinum prices slip to four-week low below $1,200/oz
(Updates prices, adds comment)
By Jan Harvey
LONDON, Sept 2 (Reuters) - Gold prices held near $955 an
ounce in Europe on Wednesday, awaiting fresh direction from the
currency markets ahead of key U.S. economic data due later.
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 $955.80 an ounce at 1117 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 80 cents at $957.30.
Platinum <XPT=> however slipped to a four-week low of $1,199
an ounce as fears over the demand outlook for the autocatalyst
metal spooked investors.
INTL Commodities' head of precious metals Gerry Schubert
said gold prices had held up well given weakness in equities on
Wednesday and oil's slide below $70 a barrel, suggesting it
remains well supported.
"We have a lack of selling for gold and silver, and probably
even some light ETF investment buying," he said. "But the
fundamentals in platinum are pointing lower."
The dollar index <.DXY>, which measures the U.S. unit's
performance against a basket of major currencies, eased in early
trade as the yen hit a seven-week high versus the dollar, also
lending some support to gold. []
Oil prices rose above $68 on Wednesday, after a 3 percent
drop in the previous session, as data 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 jobs reports, which are seen as an important precursor to
non-farm payrolls number due Friday.
In the first jobs report, by global outplacement consultancy
Challenger, Gray & Christmas, Inc, planned layoffs at U.S. firms
fell in August, suggesting less stress on the labour market and
improvements in consumer spending. []
"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. []
Platinum fell as investors worried about the demand outlook
as a spate of government-sponsored scrappage schemes that had
supported car sales neared an end.
The white metal was at $1,204 an ounce against $1,224.50,
while palladium <XPD=> fell to $280 against $287. Both metals
are being pressured by profit taking and a dearth of news on
South African strikes, analysts said. []
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 a physical commodity.
Palladium 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."
(Editing by Sue Thomas)
