* Gold bounces from 5-week low on bargain hunting
* Trading slow ahead of series of U.S. data
(Updates prices)
By Lewa Pardomuan
SINGAPORE, July 31 (Reuters) - Gold advanced on Thursday,
bouncing on bargain hunting from its lowest level in more than
a month hit the previous day, but investors kept a low profile
ahead of potentially market-moving U.S. economic data.
Platinum also rebounded but as a slowing U.S. economy and
poor car sales sparked fears of falling demand for
autocatalysts, the metal would rely on gold's movements for
direction, dealers said.
Gold <XAU=> rose to $911.90/912.90 an ounce from
$907.20/908.40 an ounce late in New York. Gold dropped as low
as $893.50 an ounce on Wednesday, its weakest since June 26, on
the dollar's rise.
"I would suggest, now that oil is back to around $126, that
gold would probably look to maintain the level above $900 and
may well build to rise a little bit in the next few days," said
Darren Heathcote of Investec Australia in Sydney.
"I think the support that gold is receiving from the oil
price was starting to wane as I believe there's a good
possibility that oil prices are heading lower," he said.
Gold has struggled to sustain gains since rallying to a
four-month high of $987.75 an ounce in mid-July, driven by
declines in oil and a recovery in the dollar that robbed the
metal of some of its safe haven appeal.
Early buying from speculators in Japan lifted cash gold but
gains may be limited after the Japanese shifted their money
back into the Tokyo Commodity Exchange, where the most active
contract had dropped to a four-week low, said dealers.
Gold is well below March's record high of $1,030.80.
Oil <CLc1> shed 4 cents to $126.73 a barrel, having settled
nearly 4 percent higher. []
"I still believe the long-term outlook for oil is around
the $80 to $90 (levels). The realisation will come soon enough
that's what we are heading to, and gold will fall as a result,"
said Heathcote.
The euro was hardly changed at $1.5577 <EUR=> after falling
to a one-month low of $1.5522 in the previous session.
Investors awaited a trail of economic data, including the
monthly U.S. payrolls report on Friday, that may offer clues as
to whether the Federal Reserve will hike interest rates later
in the year.U.S. GDP data was due on Thursday. []
Spot platinum <XPT=> rose to $1,739.50/1,759.50 an ounce
from $1,725.00/1,745.50 late in New York. It struck a lifetime
high $2,290 in early March after a power shortage in main
producer South Africa disrupted mining and sparked supply
worries.
"It looks bearish and there are no signs of a recovery yet.
It could get a bit of help from gold, but gold's going nowhere
now also," said a dealer in Singapore.
"Technically, I am pegging the next support around the
$1,682 regions. Upside is around 1,800. Platinum has priced in
a lot of premiums on the South Africa power crisis in the early
part of this year," he said.
New York gold futures <GCQ8> added $8.9 to $911.80 an
ounce.
TOCOM'S most active June 2009 contract <JAUc6> fell 14 yen
per gram to 3,194 yen but off an intraday low of 3,188 yen.
Spot palladium <XPD=> rose to $377.00/382.00 an ounce from
$371.50/379.50 late in New York. Silver <XAG=> edged up to
$17.52/17.58 an ounce from $17.50/17.56.
Precious metals prices at 0407 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 911.65 6.20 +0.68 9.48
Spot Silver 17.52 0.07 +0.40 18.62
Spot Platinum 1739.50 15.00 +0.87 14.44
Spot Palladium 377.00 6.00 +1.62 2.45
TOCOM Gold 3195.00 -13.00 -0.41 4.41
21160
TOCOM Platinum 6047.00 -24.00 -0.40 13.26
12142
TOCOM Silver 615.50 8.60 +1.42 13.77
497
TOCOM Palladium 1337.00 -31.00 -2.27 -1.04
473
Euro/Dollar 1.5584
Dollar/Yen 107.97
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
