* Equities, commodities rise after Monday's sell-off
* Dollar slips as risk appetite recovers
* India's gold imports fall 68 percent year-on-year in July
(Updates prices)
By Jan Harvey
LONDON, Aug 18 (Reuters) - Gold firmed in Europe on Tuesday
as the dollar slipped against a basket of six major currencies
and the oil market rebounded after the previous session's
losses, boosting the metal's appeal as an inflation hedge.
A recovery in stock markets after Monday's sharp fall
supported appetite for nominally higher-risk assets like
commodities, helping silver, platinum and palladium to bounce.
Spot gold <XAU=> was bid at $936.10 an ounce at 1124 GMT,
against $932.80 an ounce late in New York on Monday. U.S. gold
futures for December delivery <GCZ9> on the COMEX division of
the New York Mercantile Exchange rose $1.90 to $937.70 an ounce.
European shares were also boosted by forecast-beating German
economic sentiment data. [] A recovery in the wider
markets is helping gold to rise, analysts said. []
[]
"We are just looking at the other markets," said INTL
Commodities analyst Gerry Schubert. "If you look at base metals,
if you look at oil, everything has just rebounded. The range
(for gold) is now just basically wider, at $930-960."
He said physical demand was being seen from Turkey and the
Middle East, and that he expects Indian gold buying to pick up
towards the end of the month. India's gold imports fell 68
percent year-on-year in July. []
But gold was supported as the dollar index <.DXY>, which
measures the U.S. currency's performance against a basket of six
major currencies, edged lower as firmer equity markets prompted
buying of currencies seen as higher risk. []
The euro climbed against the dollar after the ZEW Institute
German economic sentiment index for August rose to 56.1 from
39.5 in July.
A softer dollar benefits gold, which is sometimes used as a
hedge against weakness in the U.S. currency. It also becomes
cheaper for holders of other currencies as the dollar slips.
OIL UP
The stock market rebound and weaker dollar also prompted
buying of bellwether commodity crude oil, which ticked up more
than 1 percent. Base metals also climbed, with aluminium and
lead rising more than 3 percent in early trade. [] []
Gains in industrial commodities helped the other precious
metals. Silver <XAG=>, which plummeted more than 5 percent to
session lows on Monday, rose to $14.00 an ounce against $13.96.
Because it is a smaller market than gold, silver's trading
pattern is often more volatile.
"Silver is always the one where, on the upside and on the
downside, any move will be exaggerated," Schubert said. "If (the
precious metals) go higher today, silver could be the main
beneficiary."
Platinum <XPT=> was at $1,224 an ounce against $1,220, and
palladium <XPD=> was at $268.50 against $265. Prices of the
metals used in autocatalysts fell on Monday but remain up 2
percent and 3 percent respectively this month.
"A weaker yen has prompted bargain hunter interest
overnight, and for the moment both should hold their current
trading ranges of $1,215-96 & $264-82," said James Moore, an
analyst at TheBullionDesk.com.
(Editing by Sue Thomas)
