* Gold slides to lowest since late May as haven demand slips
* Equities climb in Europe, United States; oil rises
* SAfrican mining directive eyed for impact on platinum
(Updates prices)
By Jan Harvey
LONDON, July 19 (Reuters) - Gold fell more than 1 percent to
a two-month low at $1,177.15 an ounce on Monday as increased
appetite for assets seen as higher risk, such as equities and
industrial commodities, dented the metal's appeal as a haven.
Spot gold <XAU=> was bid at $1,180.05 an ounce at 1548 GMT,
against $1,193.10 late in New York on Friday. U.S. gold futures
for August delivery <GCQ0> fell $8.10 an ounce to $1,180.10.
Gold's 1.5 percent slip last week has undermined confidence
in the metal, analysts said, with some short-term investors
spooked by its failure to hold above $1,200 an ounce.
"Liquidation of long positions is weighing on the gold price
today," said BNP Paribas analyst Anne-Laure Tremblay. "The
liquidation is taking gold closer to closely watched technical
levels, and this has potentially initiated further selling."
"Gold's lack of momentum has turned investors away from the
metal -- for now," she added. "This may well continue for a
while unless the (bank) stress tests results prove worrisome."
Wall Street stocks opened higher on Monday, recovering some
of the losses they posted on Friday, and tracking gains in
European equity markets. Oil also rose sharply in early
afternoon trade, spiking 2 percent at its high. [] [] []
"Some of the risk premium that has gone into gold, primarily
from the banking worries we have had, has been all but silenced
for now, so that is removing a bit of the support we have had
previously," said Saxo Bank analyst Ole Hansen.
"Liquidity is pretty poor, so it doesn't take much to move
this market," he added.
Gold has struggled to hold its ground since hitting a record
$1,264.90 an ounce in late June on concerns over euro zone
sovereign debt, which boosted interest in the metal as a hedge
against currency volatility.
EURO FIRMS
Holdings of the world's largest gold exchange-traded fund,
New York's SPDR Gold Trust <GLD>, were steady at 1,314.211
tonnes on Friday. They have slipped more than 6 tonnes in July
so far but are still up more than 180 tonnes since the start of
the year.
The euro held firm in afternoon trade, shrugging off early
losses that followed a downgrade of Ireland's credit rating, as
traders awaited results of bank stress tests. []
Platinum <XPT=> was at $1,504.50 an ounce against $1,509,
and palladium <XPD=> was at $441.40 against $446.78.
Aquarius Platinum <AQP.L>, the world's fourth-largest
primary platinum producer, said it would appeal against a
directive introduced by the principal inspector of the North
West region of South Africa on bord and pillar mining.
[]
In bord and pillar mining, miners extract material from
corridors, or bords, leaving material between the bords as
pillars holding up the roof.
The directive stipulates all mechanised bord and pillar
mines in the region must reduce the width of the bord to six
metres from 10 metres. Aquarius said it does not believe the
directive will result in fewer accidents.
"As the details become clearer and in turn the production
implications, this development has the ability to inject a South
African premium into the platinum price," said UBS analyst Edel
Tully in a note.
"Platinum's reaction so far has been limited in Europe. But
it's quite possible that the supply uncertainty alone could well
feed into a stronger platinum price as the week progresses."
Silver <XAG=> was at $17.54 an ounce versus $17.79.
(Reporting by Jan Harvey; Editing by Jane Baird)
