* Dollar slips from highs as traders await news on Lehman
* Oil climbs more than $1 a barrel
* Platinum, palladium bounce back after sharp sell-off
(Updates throughout, changes dateline, pvs SINGAPORE)
By Jan Harvey
LONDON, Sept 12 (Reuters) - Gold bounced more than 2 percent
in Europe on Friday from the previous session's 11-month low,
reflecting gains across the board for precious metals, as the
dollar retreated from highs against the euro.
Spot gold <XAU=> rose to $753.90/755.10 an ounce at 0959 GMT
from $739.60/741.20 an ounce late in New York. Earlier it
rallied more than 2 percent to a session high of $757.90.
"The higher euro-dollar has taken away selling pressure from
investors," Commerzbank senior trader Michael Kempinski said.
The dollar eased broadly as a more optimistic view of
investment bank Lehman Brothers' future boosted equities and
prompted currency traders to cash in on recent gains.
[]
Gold typically moves in the opposite direction to the U.S.
currency, as it is often bought as a currency hedge. Traders are
awaiting further news on Lehman later in the day, amid
speculation the bank may be planning an announcement.
Gold also is being helped by a pick-up in crude prices. Oil
rose over $1 a barrel on fears Hurricane Ike could affect
production in the United States, the world's biggest energy
consumer. []
Traders also are looking to economic data due out later in
the session for clues as to the future direction of the dollar.
U.S. retail sales numbers and PPI data for August are due
out at 1230 GMT, and the Reuters/University of Michigan consumer
confidence data is due at 1355 GMT.
"The U.S. economic data released in the afternoon might be
negative for gold, as our U.S. economists expect that the
consensus might be surprised with better figures for retail
sales and PPI," Dresdner Kleinwort said.
DOWNWARD RISK
Analysts remain cautious over the outlook for gold. Although
the dollar is softening, overall the U.S. unit is expected to
trend higher.
Traders say they have seen firm demand for gold coins, bars
and jewellery, but the support this lends to prices may not be
felt until they fall to lower levels.
"Physical demand increased again around the $750 levels, but
a lot of customers expect a bigger (price) drop in the future,"
Kempinski said. "Some customers are looking for $700."
Among other precious metals, platinum and palladium both
bounced up after recent losses. Platinum has dropped 14 percent
since last Friday, and is more than 50 percent below the
all-time high of $2,290 an ounce it hit in March.
Palladium also has shed 9 percent of its value since last
Friday, and touched a near three-year low of $212 on Thursday.
While the metals have rebounded from lows as bargain hunters
close in, "we'll probably need to hear some positive news from
the auto sector to bring fundamental support", UBS analyst John
Reade said in a note.
Spot platinum <XPT=> was at $1,166.00/1,186.00, up from
$1,126.50/1,146.50 late in New York on bargain hunting, having
earlier hit a session high of $1,180. Palladium <XPD=> climbed
to $243.00/251.00 against $226.50/234.50.
Spot silver <XAG=> was at $10.80/10.87 against $10.43/10.51.
Earlier the metal rallied more than 5 percent to a session high
of $10.91.
(Reporting by Jan Harvey; Editing by Michael Roddy)
