* Gold falls as dollar firms, oil slides
* Stronger equities reduce gold's appeal as alternative
* Traders eye U.S. data due later this week
(Adds comment, updates prices)
By Jan Harvey
LONDON, July 29 (Reuters) - Gold slipped on Wednesday as the
dollar climbed, denting the metal's appeal as a currency hedge,
with falling oil prices and a stronger opening on Wall Street
also dampening buying.
Gold <XAU=> slid to $920.30/921.30 an ounce at 1345 GMT from
$928.45/929.65 late in New York on Monday.
"(This move) is pretty much forex related, and oil is coming
down," said senior Commerzbank trader Michael Kempinski. "We
need to see some stronger commodities in general, and a stronger
euro, to push gold higher again."
The dollar posted gains against the euro on Monday,
pressuring bullion prices. Gold tends to trade in the opposite
direction to the U.S. currency, to which it is often bought as
an alternative investment. []
The metal's other main external driver, oil, slipped lower,
pulling gold in its wake, as signs of weakening demand and a
rising dollar outweighed the supply threat linked to tensions in
Iran and Nigeria. []
While gold benefited from equity market weakness earlier on
Monday, it dipped in later trade as stocks ticked up, dampening
interest in the precious metal as an alternative investment.
U.S. equities rose at the open on Tuesday as oil prices fell
and a raft of companies, including biotech giant Amgen <AMGN.N>
released better-than-expected earnings reports. []
Until there are significant moves in oil and the dollar,
prices are set to remain rangebound, analysts said, with
physical buying muted during the low-demand summer season, and
exchange-traded funds' holdings steadying after recent gains.
Gold traders are awaiting the release of U.S. economic data
due later this week to give fresh direction to trade.
U.S. data due later in the week, including GDP numbers and
initial jobless claims on Thursday, and, especially, non-farm
payrolls, construction spending and auto sales data on Friday,
could have a significant impact on the dollar.
Traders are also looking ahead to tomorrow's oil inventory
data from the U.S. Department of Energy to give fresh direction
to the market.
"Today, the market might turn attention on the DoE inventory
report released tomorrow," said Dresdner Kleinwort analyst Peter
Fertig.
"The consensus is looking for another drop of crude oil
inventories, which might provide some support for crude oil and
thus also for gold."
A rise in oil prices often benefits gold, as the precious
metal is typically bought as a hedge against oil-led inflation.
Among other precious metals, spot platinum <XPT=> hit its
highest level in almost a week at $1,775 an ounce, before easing
back to trade at $1,740.00/1,760.00 against $1,763.00/1,783.00
late in New York.
Spot palladium <XPD=> was unchanged at $385.50/393.50, the
level it traded at late in New York on Monday. Silver <XAG=>
fell to $17.19/17.24 an ounce from $17.46/17.52 late in New
York.
(Reporting by Jan Harvey; Editing by Peter Blackburn)
