(recasts, adds quotes, changes prices, pvs SINGAPORE)
By Atul Prakash
LONDON, May 27 (Reuters) - Gold drifted lower on Tuesday,
erasing overnight gains, as the dollar bounced off a one-month
low, but traders kept an eye on rising oil prices following
supply disruptions in Nigeria.
Other precious metals followed suit, with spot silver <XAG=>
edging down and spot platinum <XPT=> paring early gains.
Spot gold <XAU=> fell to $922.30/923.30 an ounce at 1025
GMT, from an earlier intra-day peak of $930.50, and down from
$925.20/926.60 in New York late on Friday.
Markets in Britain and the United States were closed for
public holidays on Monday.
"It's (gold) not showing any particular propensity to move
either way at the moment. There's some key economic data out
this week which will have an influence on its direction," said
Daniel Hynes, metals strategist at Merrill Lynch.
"Until we get a better feel of the short term outlook, it's
going to be rangebound. It's really struggled to push above the
$925 mark and when it has, it's been sold off pretty well."
The euro slipped from a one-month high against the dollar,
relinquishing earlier gains after weak German consumer sentiment
figures stoked concerns that cracks in the euro zone economy are
starting to show.
Investors also expected U.S. economic data and speeches this
week by Federal Reserve officials, including Chairman Ben
Bernanke on Thursday, to provide a clearer picture of the U.S.
economy. New U.S. home sales for April and consumer confidence
for May are due at 1400 GMT.
But a rise in oil prices above $133 on production problems
in the North Sea over the weekend and in Nigeria on Monday where
rebels blew up a pipeline, kept inflation fears high and put a
floor under falling bullion prices.
"Volatility looks set to remain high in the coming days,
with the dollar and oil to continue providing much of the metals
intra-day direction," James Moore, analyst at TheBullionDesk.com
said in a report.
He added that inflation pressures and ongoing credit market
issues provide background support.
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange fell $3.00 to $922.80 an
ounce in electronic trading.
"Although the dollar's weakness will be supporting the price
of gold, the seasonal dip in physical demand prior to the third
quarter makes strong gold gains unlikely," Commerzbank said.
"Nevertheless, gold and other precious metals, as liquid
tangible assets traditionally seen as a good hedge against
inflation, are still an attractive option."
In other precious metals, spot platinum <XPT=> rose as high
as $2,189 an ounce before falling to $2,167.50/2,187.50, versus
$2,156.50/2,176.50 late in New York on Friday.
Silver <XAG=> fell to $18.11/18.16 an ounce from
$18.18/18.26, while palladium <XPD=> was flat at $446/$454.
(Additional reporting by Karl Plume in London and Maryelle
Demongeot in Singapore, Editing by Peter Blackburn)
(Reporting by Atul Prakash; editing by ...)
