* Bargain hunters lift prices but gold sees resistance at
$940
* Eyes on G8 meeting
* Oil bounces, while euro steady
(Updates prices)
SINGAPORE, July 8 (Reuters) - Gold regained strength on
Tuesday as bargain hunters resurfaced after the price dropped
to its lowest level in more than a week, but steadier oil could
cap gains.
Silver edged up, palladium slipped while platinum rebounded
after falling to a 1-month low on Monday on fears a slowing
U.S. economy may weaken demand for the metal used in auto
catalysts.
Gold <XAU=> rose to $926.00/927.05 an ounce from
$925.15/926.35 an ounce late in New York. Gold fell as low as
$914.50 an ounce on Monday, its lowest level since June 27,
amid declines in commodities such as oil and grains.
Investors also focused on the annual summit of the Group of
Eight Industrialised nations in Japan to see whether G8 leaders
would comment on dollar weakness, which in theory boosts gold's
appeal as an alternative investment.
"The situation in Iran is not yet resolved. We have to see
how the U.S. will react," said Ronald Leung, director of Lee
Cheong Gold Dealers in Hong Kong.
Speculation about an attack on Iran over its nuclear
programme rose after a report last month said Israel had
practised such a strike. Fears of military confrontation helped
send oil to record highs, elevating gold's appeal as a hedge
against inflation.
"I think $910 is still supporting gold. Maybe $940 is the
resistance for the time being. It's a bigger range and the
market seems choppy," said Leung. Oil <CLc1> added 48 cents to
$141.85 a barrel, having fallen nearly 3 percent on Monday amid
signals Iran would be more flexible in negotiations over its
nuclear programme. []
The euro was little changed at $1.5730 <EUR=>, near
Monday's session high around $1.5750. []
Gold futures for August delivery <GCQ8> on the COMEX
division of the New York Mercantile Exchange fell $1.1 an ounce
to $927.7.
Silver <XAG=> edged up to $17.83/17.89 an ounce from
$17.79/17.84 late in New York.
Spot platinum <XPT=> rose to $1,982.50/2,002.50 an ounce
from $1,967/1,987 an ounce late in New York. It had dropped to
$1,962.50 an ounce on Monday, its lowest level since early
June, on fears of weakening demand.
Platinum struck a record at $2,290 an ounce in March after
a power crisis in main producer South Africa disrupted mining
and sparked fears of a supply deficit.
Spot palladium <XPD=> fell to $440.50/458.50 an ounce from
$443.00/451.00 an ounce.
The most active Tokyo platinum contract for June 2009
delivery <0#JPL:> on the Tokyo Commodity Exchange ended the
morning session 23 yen per gram lower at 6,762 yen.
Precious metals prices at 0247 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 925.90 0.45 +0.05 11.19
Spot Silver 17.82 0.07 +0.39 20.65
Spot Platinum 1982.00 15.00 +0.76 30.39
Spot Palladium 440.50 -2.50 -0.56 19.70
TOCOM Gold 3222.00 2.00 +0.06 5.29
28724
TOCOM Platinum 6762.00 23.00 +0.34 26.65
13824
TOCOM Silver 619.90 -1.80 -0.29 14.58
955
TOCOM Palladium 1571.00 -6.00 -0.38 16.28
889
Euro/Dollar 1.5695
Dollar/Yen 107.10
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Michael Urquhart)
