* Equities, industrial commodities dip
* Dollar little changed, new direction awaited
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, Aug 25 (Reuters) - Gold ticked higher, recovering
some of the previous session's losses, as a dip in risk appetite
boosted interest in the metal as an alternative to nominally
riskier assets such as equities and industrial commodities.
Spot gold <XAU=> was bid at $946.80 an ounce at 0917 GMT,
against $941.40 an ounce late in New York on Monday. U.S. gold
futures for December delivery <GCZ9> on the COMEX division of
the New York Mercantile Exchange rose $5.20 to $948.90 an ounce.
The precious metal fell 1 percent on Monday as the dollar
rebounded after early losses. With the U.S. currency flattening
out on Tuesday, perceptions of risk are taking over as the key
driver of gold, traders said.
Simon Weeks, head of precious metals at the Bank of Nova
Scotia, said a more positive view on the economy and a rise in
equities pressured gold in the last session. "People have been
liquidating gold positions to put on risk elsewhere," he said.
"Overnight, sentiment seems to have flip-flopped again," he
added. "People are taking a breather when it comes to
commodities and equities, and gold has recovered a bit."
Equities fell in Europe in early trade after early declines
in Asia, while oil prices rose more than 0.5 percent, with
traders attributing growing risk aversion to a lack of
confidence in China's recovery. [] [] []
Oil slipped below $74 a barrel, after hitting a 10-month
high on Monday, pressured by falling appetite for risk. []
The dollar edged higher as the euro came under pressure from
falling European stock markets. []
A firmer dollar often depresses gold, which can be bought as
an alternative to the unit, but with the currency relatively
flat, its influence is taking a back seat to risk appetite.
"For the time being, (gold) looks set to hold the current
$930-65 range, tracking moves in both equities and the
currencies," said James Moore, an analyst at TheBullionDesk.com.
JEWELLERS ON SIDELINES
Demand for the precious metal was relatively soft, with
jewellers in India, the world's largest bullion buyer, keeping
to the sidelines in anticipation of further price falls.
"Traders don't want to fill in orders at prices near 15,000
(rupees)," one Mumbai-based gold-dealer said.
Holdings of the world's largest gold-backed exchange-traded
fund, the SPDR Gold Trust <GLD>, were steady after inching up on
Friday. []
On the supply side, Africa's third-largest gold producer,
Harmony Gold Mining Co <HARJ.J>, suspended operations at its
Doornkop plant in South Africa after a fatality. []
Also in South Africa, the country's biggest union said on
Tuesday a ballot of workers at platinum producer Impala Platinum
<IMPJ.J> showed a split over whether to accept an improved wage
offer to avert a strike. []
South Africa produces four-fifths of the world's platinum,
and the threat of strike action there has supported prices in
recent days.
"If Impala and the NUM come to terms on a new contract, some
risk premium in the market may be removed and platinum prices
could fall further," HSBC analyst Jim Steel said in a note.
He said a further round of wage talks between the NUM and
Anglo American <AAL.L>, the world's largest platinum producer,
are due to be held on 3 September.
"An agreement between Impala and the NUM beforehand may
increase the chances for an agreement between Anglo Platinum and
the NUM," he said. "This could weigh on platinum prices."
Platinum <XPT=> was at $1,238 an ounce against $1,236.50,
while palladium <XPD=> was at $280 against $279.50. Silver
<XAG=> was at $14.19 an ounce against $14.13.
(Editing by Sue Thomas)
