* Gold sheds early gains ahead of U.S. data, Fed minutes
* Oil little changed around $115 a barrel, euro slips
(Recasts, updates prices, adds background)
By Lewa Pardomuan
SINGAPORE, Aug 26 (Reuters) - Gold dipped in volatile trade
on Tuesday after the dollar rose towards a six-month high
against the euro but the metal could find support above $800 an
ounce on bargain hunting, with jewellers also likely to buy on
dips.
Silver, platinum and palladium firmed but trading was slow
ahead 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=> slipped to $818.60/819.60 an ounce from
$820.20/821.40 an ounce late in New York on Monday but off an
intraday low of $817.70 an ounce.
"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 were stocking up 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," he said.
Oil <CLc1> was steady around $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 slipped to $1.4707 <EUR=>, hovering near the
six-month low of $1.4630 hit last week, as investors sought
clues on whether the euro zone economy is hurting enough for a
cut in interest rates. []
In theory, expensive oil 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 from physical buying.
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.
"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.
Silver <XAG=> inched up to $13.40/13.46 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.
Spot platinum <XPT=> firmed to $1,425.00/1,445.00 an ounce
from $1,420/1,440 late in New York. Spot palladium <XPD=> rose
to $288.50/296.50 an ounce from $285.00/293.00 an ounce.
The most active Tokyo gold contract for June 2009 delivery
<0#JAU:> on the Tokyo Commodity Exchange fell 16 yen per gram
to 2,900 yen.
New York gold futures <GCZ8> fell $2.4 an ounce to
$823.30.
Precious metals prices at 0646 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 818.85 -2.25 -0.27 -1.66
Spot Silver 13.41 -0.04 -0.30 -9.21
Spot Platinum 1425.00 2.00 +0.14 -6.25
Spot Palladium 288.50 3.50 +1.23 -21.60
TOCOM Gold 2903.00 -13.00 -0.45 -5.13
28125
TOCOM Platinum 5001.00 64.00 +1.30 -6.33
18514
TOCOM Silver 476.70 2.70 +0.57 -11.89
462
TOCOM Palladium 1047.00 6.00 +0.58 -22.50
529
Euro/Dollar 1.4683
Dollar/Yen 109.66
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by )
