* U.S. currency firms, investors await G8 meeting
* Oil support wanes as prices slip toward $72/barrel
(Releads, adds comment, updates prices)
By Kylie MacLellan and Jan Harvey
LONDON, June 12 (Reuters) - Gold slid to a three-week low
below $940 an ounce in Europe on Friday as the dollar rebounded
broadly and oil prices eased.
Most commodities priced in dollars have lost value as the
U.S. currency firmed, as they become more expensive for holders
of other currencies. Gold's profile as a hedge against
oil-induced inflation also eased with crude prices.
Spot gold <XAU=> stood at $941.35 per ounce at 1432 GMT,
against $954.00 an ounce late in New York on Thursday. It
earlier hit a low of $936.00, its weakest since May 21, as the
dollar extended its gains against several major currencies.
"The dollar is the main driver," said Societe Generale
analyst David Wilson.
"The fact that it has managed to fall out of the bottom of
that $940 to $980 range suggests there might be a bit more room
to push it on the downside," he said, adding that the metal was
probably due for some retracement after failing to pierce the
$1,000 mark last week.
The dollar rose broadly on Friday, rebounding from vicious
selling earlier in the week, with the euro pressured after weak
industrial output data. []
Crude oil eased toward $72 a barrel, a day after reaching a
near eight-month high, pressured by the dollar's strength and
views that prices have risen too far, too fast. []
Gold has historically tracked oil prices, as it is often
bought as a hedge against inflationary pressures sparked by
higher crude.
In wider markets, European shares dipped, and Wall Street
opened lower, extending losses after a report showed a rise in
inflation expectations and continuing job uncertainty even as
consumer mood improved in June. []
Investors also awaited a G8 finance ministers' meeting later
in the day.
STATIC
Demand for physical gold was weak. 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.
[]
Among other precious metals, silver <XAG=> tracked gold
lower, falling to $14.83 an ounce against $15.37. Platinum
<XPT=> was at $1,251.50 an ounce compared with $1,261, while
palladium <XPD=> was at $253.00 from $254.00.
UBS said in a note to clients that it was holding firm with
its recommendation for investors to hold long positions in
platinum.
"Although we like platinum's fundamentals, we were wary of
outright longs due to signs of slowing Chinese interest at
prices above $1200, hence we bought platinum against
even-more-extended gold."
