* Caution sparks fresh dollar buying, weighing on gold
* Platinum, silver hit near-10 week lows
(Adds comment, updates prices)
By Jan Harvey
LONDON, July 10 (Reuters) - Gold slipped on Friday as the
firmer dollar and weaker oil pressured prices, but losses were
limited as physical buying curbed the metal's slide.
Other precious metals with industrial uses fell further,
with platinum and silver both hitting near ten-week lows as
demand fears exacerbated the effects of the stronger dollar.
Spot gold <XAU=> was bid at $909.80 an ounce at 1242 GMT,
against $911.45 an ounce late in New York on Thursday. U.S. gold
futures for August delivery <GCQ9> on the COMEX division of the
New York Mercantile Exchange fell $6.20 to $909.90 an ounce.
Meawhile platinum <XPT=> touched a low of $1,085, its
weakest since May 4, before recovering to $1,087.50 an ounce
against $1,105, while palladium <XPD=> was at $232 against $233.
Commerzbank trader Rory McVeigh said platinum was suffering
along with other dollar-priced commodities from currency
effects. "Nearby support is around $1,084, so we have to see if
that holds," he said.
Gold has declined 2 percent so far this week as the dollar
strengthened, weighing on commodities. However, it is holding
above a two-month low of $904.70 hit on Wednesday.
Gerry Schubert, head of precious metals at INTL Commodities,
said consistent buying had emerged from Asia and the Middle East
with prices below $910 an ounce, while sales to Turkey were also
picking up.
"This is supportive, but it wouldn't hold a massive long
liquidation," he said. "It looks like with lower oil prices you
would expect some more liquidation."
"Unless something further comes out of the G8 (summit), I
expect further long liquidation next week," he added. "A fall
would be (limited) by physical buying, but I think if $902 fails
to hold, $875 would be the next stop we would be looking for."
MORE EXPENSIVE
The precious metals have come under pressure from the firmer
dollar, which makes them more expensive for holders of other
currencies and dents its appeal as an alternative asset.
The euro fell 1 percent to session lows against the dollar
as the New York session opened, with stock market losses
prompting investors to buy the metal as a safe store of value.
[] []
Other commodities also weakened. Oil, widely seen as the
bellwether of the asset class, slipped more than 2 percent below
$59 a barrel on Friday as economic pessimism deepened and
traders worried about new rules to curb speculation. []
Elsewhere, silver <XAG=> slipped to a near ten-week low,
pressured by strength in the dollar and reflecting losses in
industrial metals such as copper on the weaker economic outlook.
Silver touched a low of $12.54 an ounce, its weakest level
since May 4, and was later at $12.61 an ounce against $12.82.
The metal often mirrors moves in gold, but being a smaller
market, outperforms them.
"We expect more silver than gold selling in the current
environment," said Standard Bank in a note. "Silver support is
at $12.60 and $12.56, with resistance at $12.83 and $13.00."
(Reporting by Jan Harvey; Editing by Keiron Henderson)
