* Returning risk appetite boosts oil, weighs on dollar
* Physical gold demand lacklustre for jewellery, ETFs
(Updates prices)
By Jan Harvey
LONDON, July 14 (Reuters) - Gold prices rose on Tuesday,
extending the previous session's gains, as an uptick in oil
prices and a slight weakening in the dollar boosted interest in
the precious metal.
Traders awaited a raft of data due in the United States and
earnings from U.S. financial bellwether Goldman Sachs <GS.N> to
give direction to the currency and equity markets markets, which
could have a knock-on effect on gold.
Spot gold <XAU=> was bid at $924.30 an ounce at 1132 GMT,
against $920.00 an ounce late in New York on Monday. U.S. gold
futures for August delivery <GCQ9> on the COMEX division of the
New York Mercantile Exchange rose $2.10 to $924.60 an ounce.
"The weaker dollar is helping, and the rally in equities
overnight and some GDP numbers in Asia, particularly Singapore,
is giving a feelgood factor to the markets," said Calyon analyst
Robin Bhar.
European shares climbed in early trade after a bounce in
Asian stocks, with a rally in U.S. financial equities helping
Japan beat a long losing streak and upbeat economic news from
Singapore also boosting investor confidence. [] []
The dollar <.DXY> eased against a basket of currencies as
rising equities boosted currencies perceived as riskier. U.S.
June producer prices and retail sales data later in the session
were seen giving fresh direction to currencies. []
This sharpened interest in gold, which is often bought as a
hedge against weakness in the U.S. unit. The metal also becomes
cheaper for holders of other currencies as the dollar eases.
Rising equities also helped appetite for other assets such
as oil, which climbed back above $60 a barrel [].
LACKLUSTRE DEMAND
Buying of physical gold remained lacklustre. Demand from the
world's largest bullion consumer, India, suffered from a summer
lull and holdings of the main gold exchange-traded fund, the
SPDR Gold Trust <GLD>, were flat for a third session on Monday.
[] []
Technical analysts, who study historical charts patterns to
determine futures moves, said the signals for the gold market
have turned negative.
"Daily momentum indicators are backing up the bearish action
in this precious metal," said Standard Chartered in a note.
"There may be a little further to fall in the price of spot
gold, with a target set at $866.25 an ounce."
Workers in South Africa's gold sector rejected a wage hike
offer by gold producers. []
Silver <XAG=> recovered from the previous session's 10-week
low to rise in gold's wake. Silver <XAG=> was at $12.90 an ounce
against $12.82.
Nontheless, "silver looks very weak, with a potential move
back towards strong support at $12.00," said VTB Capital analyst
Andrey Kryuchenkov in a note.
Platinum <XPT=> was at $1,124.50 an ounce against $1,110,
while palladium <XPD=> was at $235 against $233.
ETF Securities said holdings of its London palladium-backed
exchange-traded commodity <PHPD.L> rose 4 percent to a record on
Monday, and were up nearly 7 percent week-on-week.
[]
Palladium is favoured by investors as a cheaper alternative
to platinum, analysts said.
(Reporting by Jan Harvey; Editing by William Hardy)
