* Gold weakens as dollar firms, oil slides and stocks up
* Stronger equities reduce gold's appeal as alternative
* Traders eye U.S. data due later this week
(Recasts, updates prices, market activity to close, adds second
byline, dateline, previously LONDON)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, July 29 (Reuters) - Gold ended 1 percent
lower on Wednesday as the dollar climbed, oil prices fell and
U.S. stocks rose, denting the precious metal's appeal.
Gold <XAU=> was at 918.80/920.30 by New York's last quote
at 2:15 p.m. EDT (1815 GMT), down from $928.45/929.65 late in
New York on Monday.
Gold's decline was "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 rose to its highest level in a month against
major currencies <.DXY>, pressuring bullion prices. Gold tends
to move in the opposite direction of the U.S. currency, as it
is often bought as an alternative investment. []
Declining oil prices also dragged gold, as signs of
weakening demand for crude and a rising dollar outweighed the
supply threat linked to tensions in Iran and Nigeria. U.S.
crude futures <CLc1> ended $2.54 lower at $122.19 a barrel.
[]
Gold also dipped as U.S. stocks ticked up, dampening
interest in the precious metal as an alternative investment.
"When crude oil goes down, gold also goes down with the
stock market going up. Everyone is watching that correlation,"
said Adam Hewison, president of MarketClubs.com in Annapolis,
Maryland.
Hewison said gold should find support at current levels,
but the $905 to $912 an ounce area represented a key support
area. Should bullion fail to hold there, prices could test the
lows set in June below $860 an ounce, he said.
Absent significant moves in oil and the dollar, gold prices
should remain rangebound, analysts said, with physical buying
muted during the low-demand summer season and exchange-traded
funds' holdings steadying after recent gains.
U.S. gold futures for August delivery <GCQ8> settled down
$11.20, or 1.2 percent, at $916.50 an ounce on the COMEX
division of New York Mercantile Exchange.
Gold traders awaited release of U.S. economic data this
week, including GDP numbers on Thursday and nonfarm payrolls,
construction spending and auto sales data on Friday. These
reports could have a significant impact on the dollar.
Traders also looked ahead to Wednesday's oil inventory data
from the U.S. Department of Energy.
"The consensus is looking for another drop of crude oil
inventories, which might provide some support for crude oil and
thus also for gold," said Dresdner Kleinwort analyst Peter
Fertig.
Among other precious metals, spot platinum <XPT=> hit its
highest level in almost a week at $1,775 an ounce, then
retreated to end at $1,739.00/1,759.00, down from
$1,763.00/1,783.00 late in New York on Monday.
Spot palladium <XPD=> was at $380.50/388.50, unchanged from
late in New York on Monday. Silver <XAG=> fell to $17.35/17.41
an ounce from $17.46/17.52 late in New York on Monday.
(Editing by David Gregorio)
