* Dollar firms versus euro, steady against currency basket
* Economic woes, CFTC news hurt industrial precious metals
(Updates throughout, changes dateline-pvs TOKYO)
By Jan Harvey
LONDON, July 8 (Reuters) - Gold slipped below $920 an ounce
in Europe on Wednesday as a firmer dollar versus the euro hit
demand for the metal, but remained in a relatively tight range
as traders awaited direction from the currency markets.
Platinum prices hit their lowest since mid May, weakened by
global economic concerns and worries a potential clampdown on
speculation in U.S. energy and commodity trading could
jeopardise prospects for a U.S. platinum exchange-traded fund.
Spot gold <XAU=> slipped to a low of $918.50 an ounce and
was bid at $921.60 an ounce at 0958 GMT, against $923.30 an
ounce late in New York on Tuesday.
"As long as we stay between $915-940, (gold) is more or less
stuck in a range trade," said Michael Blumenroth, a trader at
Deutsche Bank. "It would have to trade below $915 to see more of
a down-move."
"There is a seasonal lack of demand so we shouldn't expect
to see any big moves to the upside," he added.
Gold buying in India, the world's largest bullion consumer,
was weak as the dollar strengthened against the rupee, making
the metal more expensive for local consumers. []
A slight uptick in the dollar versus the euro weighed on
interest in gold as a currency hedge, though the U.S. unit was
only steady against a basket of six currencies. []
On the wider markets, sentiment was cautious, with European
shares falling for the fifth straight session. The losses
reflected a slide in Wall Street stocks to a ten-week low on
Tuesday, amid fears over economic weakness. [] []
Blumenroth said stock market weakness could be seen as a
sign of fresh trouble to come for the economy, which may prompt
further gold buying later in the year.
ECONOMY WOES
Industrial commodities slipped amid doubts over the outlook
for the global economy, with both oil and insutrial metals
trending lower. The more industrial precious metals -- platinum,
palladium, and silver -- all posted losses.
News the U.S. futures market regulator, the Commodity
Futures Trading Commission, was considering a clampdown on
excessive speculation in commodities by restricting holdings of
big players also put some downward pressure on prices, dealers
said.
"The CFTC announcement is definitely putting some pressure
on metals, as well as on energy," said one European precious
metals trader.
The news prompted speculation that the approval of proposed
U.S. platinum and palladium ETFs could be delayed until the CFTC
had finished its deliberations.
"We do wonder whether the proposed US listing of platinum
and palladium ETFs - under consideration by the SEC at present -
can possibly be approved until the CFTC's investigations are
concluded," UBS strategist John Reade said in a note.
Spot platinum <XPT=> fell nearly 2 percent to $1,110 an
ounce against $1,132, having earlier hit a low of $1,102.50, its
weakest since May 18. Palladium <XPD=> was at $236 against $239.
Silver <XAG=> fell below $13 an ounce for the first time
since May 5 to hit a low of $12.95. It was later at $13.10 an
ounce against $13.10.
(Reporting by Jan Harvey; Editing by Peter Blackburn)
