* Gold bounces from lows ahead of U.S. data, Fed minutes
* Oil extends gains above $115 a barrel, euro slips
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Aug 26 (Reuters) - Gold rebounded from lows on
Tuesday as rising oil spurred bargain hunting and helped the
metal defy a rising dollar.
Silver, platinum and palladium firmed but trading was slow
before Tuesday's U.S. housing and consumer confidence data and
minutes from the Federal Reserve's last policy meeting that may
offer clues on the direction of the economy and interest rates.
Gold <XAU=> hit an intraday low of $817.80 an ounce on
selling in Japanese futures before rebounding to $820.30/821.30
an ounce, little changed from $820.20/821.40 an ounce late in
New York on Monday.
"Gold appears to have built a base above the $800 per ounce
level and with demand for gold in India likely to pick up ahead
of Diwali, the Hindu festival of lights in October, prices
should remain buoyant," Investec Australia said in a report.
Gold was well below a lifetime high of $1,030.80 hit in
March, and dealers said jewellers and other physical buyers
were expected to buy on dips ahead of the festive seasons in
Asia, especially in main consumer India.
"Physical metals are cheap, especially silver," said
William Kwan, bullion director at Gold Capital Management in
Singapore.
"I am looking at $807 as the support level for spot gold
today. The upside is quite high at around $835 for a start and
then followed by $850. Let's see how it goes," he said.
Oil <CLc1> extended gains above $115 a barrel on concerns
that tropical storm Gustav in the Caribbean coulddisrupt oil
and natural gas output in the Gulf of Mexico as itmoves
northwest. []
The euro dipped to $1.4711 <EUR=>.
In theory, expensive lifts gold's appeal as a hedge against
inflation. A stronger dollar reduces its appeal as an
alternative investment to currencies but dealers said gold was
likely to find support around $800 on the back of physical
buying.
"Physical buying remains firm going into the festive period
and that may support gold. I guess we will still be trading in
a range of $800 to $845," said a dealer in Singapore.
India's gold markets were abuzz with pre-festival buying,
with dealers reporting a shortage in supply. The festive season
culminates in October with Diwali.
Silver <XAG=> inched up to $13.41/13.47 an ounce from
$13.37/13.43 an ounce late in New York. The metal, which
normally tracks gold, tumbled to $12.39 in mid-August, its
weakest since last September.
The most active Tokyo gold contract for June 2009 delivery
<0#JAU:> on the Tokyo Commodity Exchange fell 12 yen per gram
to 2,904 yen.
Spot platinum <XPT=> firmed to $1,429.50/1,449.50 an ounce
from $1,420/1,440 late in New York. Spot palladium <XPD=> rose
to $290.00/295.00 an ounce from $285.00/293.00 an ounce.
New York gold futures <GCZ8> added $1.1 an ounce to
$826.80.
Precious metals prices at 0354 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 820.00 -1.10 -0.13 -1.53
Spot Silver 13.41 -0.04 -0.30 -9.21
Spot Platinum 1428.50 5.50 +0.39 -6.02
Spot Palladium 290.00 5.00 +1.75 -21.20
TOCOM Gold 2903.00 -13.00 -0.45 -5.13
15750
TOCOM Platinum 5012.00 75.00 +1.52 -6.12
13161
TOCOM Silver 477.00 3.00 +0.63 -11.83
285
TOCOM Palladium 1044.00 3.00 +0.29 -22.72
347
Euro/Dollar 1.4712
Dollar/Yen 109.48
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Ben Tan)
