* U.S. currency firms, investors await G8 meeting
* Oil prices slip below $72/barrel
(Releads, adds comment, updates prices)
By Kylie MacLellan and Jan Harvey
LONDON, June 12 (Reuters) - Gold fell below $950 an ounce in
Europe on Friday as the dollar rose against the euro after weak
European economic data dented interest in the precious metal as
a currency hedge.
Most commodities priced in dollars have lost value as the
U.S. currency firmed, as they become more expensive for holders
of other currencies.
Spot gold <XAU=> was bid at $948.20 an ounce at 1121 GMT,
against $954.00 an ounce late in New York on Thursday.
"The dollar is a little bit firmer...and oil has come off
from the highs over $73," said Mitsubishi analyst Tom Kendall.
Gold has historically tracked oil prices, as it is often
bought as a hedge against rising inflation.
"(Gold) has been increasingly struggling over the last 6 or
7 days, since it touched $990 and failed to get to $1,000...the
upside moves are getting fewer and fewer," Kendall said.
The dollar rose against a basket of major currencies <.DXY>,
boosted by a slide in the euro after a plunge in euro zone
industrial output reminded investors that the region's economy
continues to struggle. []
Crude futures eased below $72 a barrel, weighed by the
firmer dollar but supported near an eight-month high. []
On the wider markets, European shares were flat as investors
awaited a G8 finance ministers' meeting later in the day, while
U.S. stock futures pointed to a mixed open on Wall Street. []
STATIC
Fresh demand for physical gold was lacklustre. Holdings of
the SPDR Gold Trust, the world's largest bullion exchange-traded
fund, were static for a fourth session on Friday. []
Meanwhile gold buying in India, the world's biggest bullion
consumer last year, declined, with appetite for the precious
metal receding as the wedding season tails off. []
Asset manager Fortis Investments told Reuters it favours
gold as a longer-term play on both inflation and deflation. Gold
is seen as an asset that holds its value in volatile times.
[]
But with physical demand lacklustre, gold is struggling to
break out of its established range.
"It is getting increasingly tough (for gold) to hold on to
its gains beyond $965-966 levels," said Pradeep Unni, senior
analyst at Richcomm Global Services, in a note.
Repeated failures to break and hold above this level has
triggered a sell-off in the market which has resulted in a slide
to the $943-$944 zone, he said.
"Gold seems to have been sandwiched between these levels and
as long as it trades in the same pattern, an immediate trend
would be difficult to discern," he added.
Among other precious metals, silver <XAG=> tracked gold
lower, falling to $15.04 an ounce against $15.37. Platinum
<XPT=> was at $1,245.50 an ounce against $1,261, while palladium
<XPD=> was at $251.50 against $254.00.
