* Gold ends slightly up despite oil losses
* Weaker dollar brings gold off early lows
* Platinum supported by South African power shortage
(Recasts, adds analyst comments, closing prices, other details,
adds NEW YORK to dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, June 17 (Reuters) - Gold ended a touch
higher on Tuesday, recovering from session lows as buying
increased after the dollar softened against the euro following
disappointing U.S. economic data.
Gold <XAU=> was at $884.20/885.40 an ounce by New York's
last quote at 2:15 p.m. EDT (1815 GMT), against $883.60/884.80
an ounce late in New York on Monday.
The precious metal came under pressure in earlier trade as
traders took profits after a strong session on Monday, when gold
had risen to an intraday high of $894.70 an ounce on the weaker
dollar.
A dip in crude prices after Monday's record highs dampened
sentiment toward the precious metal, which is often bought as a
hedge against oil-led inflation.
"If oil prices are poised for a potential fall, players are
going to hold back from buying gold in anticipation of that,"
said Fairfax IS analyst John Meyer.
Crude slipped after Monday's all-time high of $139.89, as
investors took profits ahead of a meeting of oil producers and
consumers in Saudi Arabia this weekend. U.S. crude futures
<CLc1> ended down 60 cents at $134.01 a barrel. []
However, the market was still supported by weakness in the
dollar. The U.S. currency slipped against the euro on Monday as
U.S. housing starts fell and after in-line producer price
inflation numbers.
The data was interpreted as reducing the chances of an early
U.S. rate hike from the Federal Reserve. []
A softer dollar typically benefits gold, which is often
bought as an alternative investment to the U.S. currency.
However, uncertainty remained over the future path of the
dollar, which has fluctuated over the last week as investors
debate the likelihood of rate hikes.
"There is a bit of uncertainty about the direction the
dollar is going to take," said Michael Widmer, an analyst at
Lehman Brothers. "We are still waiting for more data which might
have an impact on that."
"Overall, looking at what we're seeing in the market, there
is no clear signal for (gold) prices either way," he added.
James Steel, metals analyst at HSBC in New York, told
clients in a note that a flattening U.S. Treasuries yield curve
signals a stronger U.S. dollar in the longer term, and that
could weigh on gold prices.
Among other precious metals, silver <XAG=> edged down to
$17.04/17.12 an ounce from $17.16/17.22 late in New York on
Monday, when it jumped to a one-week high of $17.40 due to a
weaker dollar and gains in gold.
Spot platinum <XPT=> rose to $2,052.00/2,072.00 an ounce
from $2,038.50/2,058.50 late in New York.
Earlier on Tuesday, Zurich Cantonal Bank (ZKB) told Reuters
its platinum exchange-traded fund has grown 45 percent in volume
terms from February to a record 62,300 ounces.
Increased car buying is fueling demand for the metal, which
is used in autocatalysts, while supply remains problematic after
a power shortage hit major producer South Africa earlier this
year, the bank said.
"The platinum market has the strongest fundamentals in the
near term, as the power problems in South Africa keep the market
on tenterhooks," said Barclays Capital in a note.
Spot palladium <XPD=> was steady at $456.50/464.50 an ounce,
essentially flat compared with its previous U.S. close on
Monday. It hit a high of $460 an ounce on Monday, its strongest
level since April 18.
(Editing by Matthew Lewis)
