UPDATE 1-Gold heads lower on U.S. dollar, physicals may help

                                
 (Updates prices)
                                
 SINGAPORE, Aug 25 (Reuters) - Gold fell 1.2 percent on
Monday, losing some of its safe-haven appeal as the U.S. dollar
strengthened against other currencies, while weaker oil prices
also prompted investors to ditch their bullion holdings.
                                
 But the metal could find support around $800 an ounce, with
the help of buying from jewellers ahead of the festive seasons
especially in main consumer India. Other precious metals also
weakened.
                                
 Gold <XAU=> slipped to $817.45/818.45 an ounce from
$827.00/828.60 an ounce late in New York on Friday but was off
nine-month lows around $773 hit in mid-August.
                                
 Demand for gold in India normally picks up ahead of Diwali,
the Hindu festival of lights in October, as people buy gold for
auspicious reasons. Also, many Hindi marriages are likely to be
held between September and November, said dealers.
                                
 "Jewellery demand from Italy and India will gradually
improve. $800 will be maintained," said Yukuji Sonoda, precious
metals analyst at Daiichi Commodities in Tokyo.
                                
 Bullion investors would also be looking at the price of
crude oil for direction.
                                
 "Oil fluctuates every day, but $110 is the bottom price,"
the Daiichi analysts said.
                                
  Oil <CLc1> lost 34 cents to $114.25 a barrel, having
fallen 5.4 percent on Friday, the biggest one-day drop in
percentage terms since Dec. 27, 2004, as supply concerns waned.
[O/R]
                                
 But tensions between the United States and Russia, the
world's second-biggest oil producer, would continue to lend
support to prices until Moscow withdraws its troops completely
from Georgia, analysts said.
                                
 Gold futures for December delivery <GCZ8> on the COMEX
division of the New York Mercantile Exchange lost $9.7 an ounce
to $823.90.
                                
 The dollar continued to make gains, hitting a two-year high
against sterling after data last week showed Britain's economy
was stalling, raising the prospect for monetary easing by the
Bank of England. [USD/]
                                
 Comments by influential investor Warren Buffett that he has
no bets against the dollar also added to the dollar's upward
momentum. [ID:nN22379030]
                                
 Spot platinum <XPT=> dropped to $1,402.50/1,422.50 an ounce
from $1,425.50/1,445.50 an ounce late in New York.
                                
 Spot palladium <XPD=> inched down to $280.00/288.00 an
ounce from $285.00/293.00 an ounce. Silver <XAG=> fell to
$13.16/13.22 an ounce from $13.33/13.41 an ounce late in New
York.
                                
 The most active Tokyo gold contract for June 2009 delivery
<0#JAU:> on the Tokyo Commodity Exchange fell 24 yen per gram
to 2,913 yen.
 Precious metals prices at 0129 GMT
 Metal             Last    Change  Pct chg  YTD pct chg
Turnover
 Spot Gold         817.70   -4.40   -0.54     -1.80
 Spot Silver        13.16   -0.16   -1.20    -10.90
 Spot Platinum    1401.00  -24.50   -1.72     -7.83
 Spot Palladium    280.00   -3.00   -1.06    -23.91
 TOCOM Gold       2912.00  -25.00   -0.85     -4.84       
14946
 TOCOM Platinum   4936.00 -150.00   -2.95     -7.55        
9354
 TOCOM Silver      470.30  -12.00   -2.49    -13.07         
408
 TOCOM Palladium  1018.00  -19.00   -1.83    -24.65         
148
 Euro/Dollar       1.4726
 Dollar/Yen        110.17
 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 Nick Trevethan)