* Economic woes prompt firmer dollar, weak oil; weigh on gold
* Silver hits 10-week low, pressured by dollar, base metals
(Updates throughout, changes dateline-pvs TOKYO)
By Jan Harvey
LONDON, July 13 (Reuters) - Gold edged below $910 an ounce
in Europe on Monday, with weaker oil prices and a marginally
firmer dollar weighing on prices.
The precious metal, which fell 2 percent last week as dollar
strength and losses in other commodities pressured prices, is
seen as vulnerable to further losses from here, with the $900 an
ounce level of support keenly eyed.
Spot gold <XAU=> was bid at $909.60 an ounce at 0906 GMT,
against $912.15 an ounce late in New York on Friday. Fears over
the outlook for the global economy have driven down equity
markets on Monday, denting enthusiasm for commodities.
"The oil price, the dollar and (weakness in) other metals
like silver and platinum are all putting pressure on gold," said
Commerzbank analyst Eugen Weinberg. "They are probably also
pulled down by the equity markets."
"I don't expect prices to stabilise. We will see a stronger
dollar, and we will see gold below $900, which will trigger
further technical selling."
The dollar gained against perceived higher-risk currencies
on Monday, helped by concerns over upcoming U.S. corporate
earnings and fading hopes for a quick economic recovery. []
A firmer U.S. unit makes dollar-priced commodities,
including gold, more expensive for holders of other currencies,
and dents interest in bullion as a currency hedge.
The dollar has reemerged as the chief driver of the gold
price in recent months, after taking a back seat to risk
aversion and falling stocks earlier in the year.
INFLOWS EASE
Inflows into gold-backed exchange-traded funds have eased
dramatically since the first quarter.
Holdings of the largest, New York's SPDR Gold Trust <GLD>,
were unchanged for a second consecutive session on Friday,
though the smaller European ETFs have reported some activity in
recent weeks. []
Rising pessimism over the economy also pressured oil, the
bellwether of the commodities group. Prices slipped more than $1
a barrel on Monday as falling equities pressured the market.
[]
World stocks also slipped, with heavy losses in emerging
markets. European equities extended the previous session's
losses to hit an 11-week low. []
Other precious metals also slipped, with silver tracking
gold and base metals down to hit a fresh ten-week low of $12.50
an ounce. It was later at $12.55 an ounce against $12.65.
The ratio of gold to silver has risen to 73 from around 62
in early May. "The market is very weak, and contrary to our
expectation, the gold to silver ratio is still on the rise,"
said VTB Capital analyst Andrey Kryuchenkov in a note.
"Just like platinum, the precious metal is oversold relative
to gold," he added. "Beyond $12.50, there is very solid support
around $12.00."
Meanwhile platinum <XPT=> was at $1,088.50 an ounce against
$1,104.50, while palladium <XPD=> was unchanged at $232.
(Reporting by Jan Harvey; Editing by Michael Kahn)
