* Dollar claws back lost ground, seen in range ahead of Fed
* Oil ticks higher, other commodities steady
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, June 19 (Reuters) - Gold was little changed in
Europe on Friday as the dollar recovered earlier losses against
a basket of currencies, undermining interest in the precious
metal as a currency hedge.
Spot gold <XAU=> was bid at $933.70 an ounce at 0939 GMT,
against $932.35 an ounce late in New York on Thursday. Prices
remain in a tight range, awaiting new direction from the
currency markets, currently the main driver of gold.
"(Gold) is just kind of a passive follower to what the
dollar is up to," said Saxo Bank senior manager Ole Hansen.
"The range is just getting smaller and smaller," he added.
"For today it is $941, down to $926. We need to see a break
either side for this to gain some new momentum."
The dollar rolled back early losses against a basket of
currencies on Friday, but remains under pressure as brighter
economic data fuelled expectations for growth. []
Moves in the currency remain limited, however, ahead of a
U.S. Federal Reserve policy meeting next week. As long as the
currency markets remain rangebound, gold will also be hemmed in.
Factors such as jewellery buying, safe-haven demand and
inflation hedging are all likely to remain subservient to the
influence of currencies, analysts said.
"Inflation expectations are not there just yet, and the
precious metal could see even more losses if equities bounce
back up," VTB Capital said in a note.
"Gold's attractiveness as a safe haven asset is virtually
zero at the moment, which is evident from the unchanged
speculative positions in gold futures or ETFs," it added.
STRONG SESSION
On other markets, European stocks rose after a strong
session in Asia. []
Oil prices firmed a touch after bullish economic data helped
the outlook for demand, and amid supply concerns from Nigeria,
Africa's biggest oil producer. Strength in crude can support
gold, as it boosts its appeal as an inflation hedge. []
Holdings of the major gold exchange-traded funds were
stable, as investors awaited clues from the wider markets.
Another wave of bad news on the economy could unleash new
inflows, however, analysts said. []
In supply news, Gold Fields <GFIJ.J>, the world's number
four gold producer, said its new Peruvian mine Cerro Corona
should produce some 350,000 equivalent ounces of gold in 2009
and 2010. []
Elsewhere, Swiss-based commodities trader Glencore
International was reported to be considering a stock market
listing. []
Silver <XAG=> was at $14.23 an ounce against $14.19.
Platinum <XPT=> was at $1,208 an ounce against $1,200, and
palladium <XPD=> at $240 against $238.
ETF Securities said holdings of its ETFS Physical Palladium
fund <PHPD.L> rose to a record on Thursday, up just over 3,000
ounces or 1 percent to 315,572 ounces. The fund's reserves are
up 10,000 ounces or 3.3 percent week-on-week. []
(Additional reporting by Kylie Maclellan; Editing by Sue
Thomas)
