(Adds analyst comments, closing prices, adds NEW YORK to
dateline)
By Frank Tang and Atul Prakash
NEW YORK/LONDON, April 17 (Reuters) - Gold ended lower
after hitting a three-week high above $950 an ounce on Thursday,
as a slight recovery in the dollar prompted profit-taking in the
metal.
But near record-high oil prices have lifted gold's appeal as
a hedge against inflation and are seen underpinning the market.
Spot gold <XAU=> rose as high as $952.60 an ounce and was
last at $938.90/939.70 at 2:15 p.m. EDT (1815 GMT), against
$943.90/944.70 in New York late on Wednesday, when the metal
gained 2 percent.
The euro retreated from a record high against the dollar
after Eurogroup head Jean-Claude Juncker said excessive
exchange rate volatility was bad for global growth and called
euro gains against the dollar "undesirable."
Gold often moves in the opposite direction of the dollar,
as the metal is traditionally considered an alternative
investment and a safe-haven asset.
But the metal got support from oil, which set a record
above $115 a barrel as a fall in U.S. gasoline inventories
raised supply shortage concerns ahead of the summer driving
season.
U.S. crude futures <CLc1> ended 7 cents lower at $114.86 a
barrel.
James Steel, metals analyst with HSBC in New York, told
clients in a note that gold might require increasingly dire news
to keep driving its safe-haven appeal and prices higher.
Steel also said that a combination of rising inflation and
Federal Reserve's rate cutting had been a main driver of gold's
rally.
In other markets, U.S. gold futures for June delivery <GCM8>
settled down $5.40 at $942.90 an ounce, after Wednesday's rise
to a 2-1/2 week peak.
Platinum <XPT=> rose as high as $2,063 an ounce and was last
quoted at $2,042/2,052, up from $2,015/2,025 in the U.S. market
late on Wednesday.
"The platinum story continues to remain favourable,
especially now that the spot price seems to be working its way
through the $2,040-$2,045 range resistance," Michael Jansen,
analyst at J.P. Morgan Securities, said in a note.
"We continue to believe that the power problems in South
Africa will hamstring both output from existing operations and
the efforts by miners to bring on new production. We continue to
see platinum working its way back towards the $2,200 level."
Silver <XAG=> climbed to a one-month high of $18.74 an
ounce and was last at $18.23/18.28, against $18.28/18.33 late
on Wednesday. Palladium <XPD=> was up $1 at $456/461 an ounce.
