* Dollar pressured vs euro by above-consensus German data
* Oil prices reverse losses, climb above $72
* ETFS Physical Gold sees biggest ever 1-day inflow
(Updates throughout, pvs TOKYO)
By Jan Harvey
LONDON, Aug 26 (Reuters) - Gold rose towards $950 an ounce
in Europe on Wednesday as the dollar weakened against the euro,
boosting interest in the precious metal as an alternative asset,
and oil prices recovered early losses.
Spot gold <XAU=> was bid at $949.60 an ounce at 0903 GMT,
against $943.55 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 rose $5.20 to $951.20.
Commerzbank senior trader Michael Kempinski said gold was
caught in a narrow range, with support around $940 an ounce,
awaiting direction from the currency markets.
"The euro-dollar downside is quite well supported right
now," he said. "We really need something to push the euro either
above the $1.44 or below the $1.40 (level) to see some more
action in the precious metals."
"Physical demand has dried up, but we are expecting more
buying around $930-925," he added.
The euro hit a session high against the dollar after a
stronger-than-expected German business morale survey boosted
expectations the euro zone's largest economy is pulling out of
recession. []
Firmer equity markets had already boosted higher-yielding
currencies such as the euro. European stocks rose for a fifth
consecutive session on Wednesday, while world stocks steadied
just off this week's 10-month high. [] []
Oil meanwhile rose above $72 a barrel on Wednesday after
sliding 3 percent a day before. Strength in crude often supports
gold, which can be bought as a hedge against oil-led inflation.
[]
On the physical side, demand remained sluggish in India as
traders awaited further price falls. "There could be interest if
prices fall to 14,700 (rupees)," said one Mumbai-based dealer.
Local prices are currently above 15,000 rupees per 10 grams.
LONDON ETF HOLDINGS RISE
The world's largest exchange-traded fund, the SPDR Gold
Trust <GLD>, said its holdings fell another 4.58 tonnes on
Tuesday, bringing its total outflow to 21.4 tonnes in the last
four weeks. []
But in Europe, London-based ETF Securities said it saw the
biggest ever one-day inflow into its ETF Physical Gold <PHAU.L>
product on Aug. 25. Its holdings rose 211,500 ounces to 3.190
million ounces on Tuesday. []
Among other precious metals, platinum prices received a
fillip from ongoing strike action at Impala Platinum's <IMPJ.J>
Rustenberg mine in South Africa. []
An Implats spokesman said more than 20,000 workers were
involved in the strike, ignoring a weekend call from the
National Union of Mineworkers to suspend the action.
"We expect more details later today, but (the strike) is
price supportive in the short term," said VTB analyst Andrey
Kryuchenkov in a note.
Separately, Aquarius Platinum <AQPJ.J> said contract workers
at its Kroondal and Marikana operations in South Africa had
launched a strike. []
Platinum <XPT=> was at $1,245.50 an ounce against $1,239 on
Tuesday, while palladium <XPD=> was at $285 against $286. Silver
<XAG=> was at $14.38 an ounce against $14.24.
(Reporting by Jan Harvey; Editing by Peter Blackburn)
