* Trade thin as the U.S. markets shut for Labor Day
* Oil down as Gustav shows no sign of strengthening
* Dollar's rise puts on further pressure
* Platinum drops almost 4 pct on demand woes
(Recasts, updates prices)
By Humeyra Pamuk
LONDON, Sept 1 (Reuters) - Gold slipped on Monday as oil
prices fell with Hurricane Gustav showing no signs of
strengthening, while the dollar was stronger against the euro.
Platinum tumbled almost 4 percent as poor car sales and a
slowing U.S. economy weighed on the metal, which has fallen
nearly 40 percent since hitting a lifetime high of $2,290 an
ounce in March.
Gold <XAU=> was down at $828.20/829.20 an ounce by 1124 GMT
from $830.35/832.35 an ounce late in New York on Friday.
"Gold will track the oil price almost a dollar for dollar,"
said analyst Robin Bhar at Calyon said. "And it will be capped
by the strength in dollar."
Oil fell as Hurricane Gustav showed no signs of picking up
more strength as it barrelled toward the Louisiana coast after
forcing the shutdown of nine refineries and nearly all U.S. Gulf
of Mexico oil production.
The dollar index crept towards an eight-month high while the
U.S. currency rose against sterling to its highest level in more
than two years. A stronger U.S. dollar makes it more expensive
for local currency holders.
"This is just a broad consolidation of gold. There's
resistance around $840-850 an ounce. It will struggle to make
much headway," Bhar said.
But for the longer-term several analysts are bullish, citing
strong jewellery and gold coin demand as providing support for
the yellow metal.
"The first two weeks of August saw 60,000 gold coins sold in
the U.S. The U.S. mint describes the activity as unprecedented
as new retail investors enter the market," said Meridian Fund
Managers in a research note.
"India's festival season begins next week and should provide
strong support to the price of the commodity throughout the
fall," it said.
UBS last week said the metal is likely to rally back towards
$900 an ounce in the coming months. "The only factor standing in
the way of a sharp move higher in gold is the stubborn US
dollar," UBS analyst John Reade said in a research note.
The metal dropped to a nine-month lows of around $773 an
ounce in mid-August before bouncing back but it still trades way
below its all-time high of $1,030.80 an ounce, hit in March.
SLOW DEMAND
Spot platinum <XPT=> fell as low as $1,418.50 an ounce, down
from $1,474.50/1,494.50 in New York, with technical selling. The
metal was last at $1,441/1,461.
"I think demand is slow right now. There are still worries
about the global economy, that's why they don't want to buy too
much for the being," said Dick Poon, manager of precious metals
at Heraeus Ltd. in Hong Kong.
The bulk of the world's platinum is used by automakers in
autocatalyst systems that scrub exhaust fumes of dangerous and
environmentally damaging chemicals.
A sudden slowdown in car sales in China and India is
threatening to shrink the global auto market this year, spelling
tougher times for an industry leaning on the two most populous
countries to pick up the slack in the West. []
Spot palladium <XPD=> eased to $298.50/306.50 an ounce from
$303.00/341.00 an ounce. Silver <XAG=> fell to $13.55/13.61 an
ounce from $13.58/13.68 an ounce late in New York.
(Editing by Toby Chopra)
