* Wall Street equities climb after corporate results
* Oil ticks higher after earlier losses as dollar weakens
* India's gold imports fall 68 percent year-on-year in July
(Releads, updates prices)
By Jan Harvey
LONDON, Aug 18 (Reuters) - Gold firmed on Tuesday as the
dollar weakened against the euro after above-consensus German
investment sentiment data, and as oil prices recovered earlier
losses, boosting interest in the metal as an inflation hedge.
Wall Street equities rose after better than expected
financial results from a string of U.S. corporates, supporting
appetite for nominally higher-risk assets like commodities,
which supported silver, platinum and palladium.
Spot gold <XAU=> was bid at $937.50 an ounce at 1526 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 $3.40 to $939.20 an ounce.
"Precious metals are basically tracking the dollar," said
Citigroup analyst David Thurtell. The U.S. currency fell against
the euro after an unexpected gain in German's ZEW economic
sentiment index boosted optimism about the euro zone. []
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.
Rising stock markets and the softer dollar also led to gains
in bellwether commodity crude oil, which climbed more than 1
percent. []
Gold often tracks crude prices, as it can be bought as a
hedge against oil-led inflation.
Physical demand for gold lent little support, with holdings
of the largest gold-backed ETF, the SPDR Gold Trust, unchanged
on Monday. Elsewhere data showed India's gold imports fell 68
percent year-on-year in July. [] []
However, INTL Commodities analyst Gerry Schubert said
physical demand was being seen from Turkey and the Middle East,
and he expects Indian gold buying to pick up towards the end of
the month.
SILVER VOLATILE
Among other precious metals, silver <XAG=>, which plummeted
more than 5 percent to session lows on Monday, eased to $13.94
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.
Platinum <XPT=> was at $1,225.50 an ounce against $1,220,
and palladium <XPD=> was at $267.50 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 and $264-82," said James Moore, an
analyst at TheBullionDesk.com.
(Editing by Sue Thomas)
