* Gold climbs on weaker dollar
* Platinum, palladium off 6-month lows
* Market waits for U.S. data
(Recasts, changes dateline, pvs SINGAPORE)
By Raissa Kasolowsky
LONDON, July 25 (Reuters) - Gold rose on Friday as the
dollar weakened and oil prices pared losses, while platinum and
palladium firmed from 6-month lows on bargain hunting.
Spot gold <XAU=> was up at $931.00/932.00 an ounce at 1000
GMT from $923.00/924.00 late in New York on Thursday.
"The gold market is reacting to the fact that oil is in
consolidation-recovery mode and the dollar is no longer
strengthening," David Holmes, Dresdner Kleinwort's director of
precious metals sales, said.
"We've had a significant correction off our highs and people
are now tip-toeing back into the market."
The dollar <EUR=> retreated from a two-week high versus a
basket of major currencies, knocked by weaker-than-expected U.S.
housing and jobs data in the previous session, lower equity
markets and higher oil prices. []
A stronger greenback usually pressures gold, which is often
bought as an alternative investment to the U.S. currency.
Oil prices <CLc1> rose slightly on Friday, finding some
stability after two weeks of losses as buyers crept back into
the market before the weekend. []
Gold typically moves in line with crude, as it is often
bought as a hedge against oil-led inflation.
A Reuters survey of 40 analysts and traders published on
Thursday showed a mid-range forecast of $930.00 an ounce for
gold in 2008, 30 percent above last year's average price.
[]
DATA
The precious metals market will be watching out for
important data from the United States due later in the day, with
U.S. durable goods data for June due at 1230 GMT,
Reuters/University of Michigan data for July at 1355 GMT, and
U.S. new home sales figures for June due at 1400 GMT. []
"If the dollar was to resume weakening because of negative
data coming out of the States -- which is definitely a
possibility -- then that would be a positive for the whole
commodity complex, and for gold in particular," Holmes said.
Platinum and palladium rose from six-month lows touched in
the previous session when fears of weakening demand from car
makers.
"The metal has seen modest demand overnight and given
background fundamentals we anticipate strong bargain hunter
interest once prices stabilise," said TheBullionDesk.com analyst
James Moore in a research note.
Platinum prices in particular have slipped sharply in the
past two weeks, and is currently trading nearly 25 percent below
its March record high of $2,290 an ounce.
Spot platinum <XPT=> was at $1,730.50/1,750.50 an ounce
against $1,709.50.00/1,729.50 an ounce on Thursday. The metal
touched $1,701.50 an ounce, its weakest level since January 31,
on Thursday.
Spot palladium <XPD=> traded slightly higher at
$384.00/392.00 against $382.00/390.00 late in New York. It
dropped to an intraday low of $371.50, its weakest since January
25, on Thursday.
Among other precious metals, spot silver traded slightly
higher at $17.52/17.57 an ounce, against $17.34/17.40 on
Thursday.
(Editing by Michael Roddy)
