* Dollar interest curbed by U.S. consumer sentiment downturn
* Platinum, silver hit near-10 week lows
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By Jan Harvey
LONDON, July 10 (Reuters) - Gold steadied on Friday,
reversing earlier losses, as weak stock markets boosted interest
in the metal, and the dollar slipped from highs against the euro
after data showed U.S. consumer sentiment soured in July.
Physical buying curbed a slide in gold in earlier trade, but
other precious metals with industrial uses declined, with
platinum and silver both hitting near ten-week lows as demand
fears added to the effects of the stronger dollar.
Spot gold <XAU=> was bid at $912.35 an ounce at 1459 GMT,
against $911.45 an ounce late in New York on Thursday. U.S. gold
futures for August delivery <GCQ9> on the COMEX division of the
New York Mercantile Exchange fell $3.50 to $912.70 an ounce.
"Gold is holding up quite well despite continued weakness of
crude oil and also the fact the U.S. dollar is a little bit
firmer against the euro," said Peter Fertig, a consultant at
Quantitative Commodity Research.
"We have some weakness in stock markets," he added. "Some
investors might switch back from risky assets into gold."
The Dow industrials and the S&P 500 declined on Wall Street
after the Reuters/University of Michigan consumer sentiment
survey posted at 64.6 against 70.8 in June, while European
shares headed for a fourth week of losses. []
The dollar also extended losses against the yen and pared
gains versus other major currencies after the data. Strength in
the U.S. unit had weighed on gold earlier in the session. []
The precious metal has declined 2 percent this week as the
stronger dollar weighed on commodities. However, it is holding
above a two-month low of $904.70 hit on Wednesday.
Gerry Schubert, head of precious metals at INTL Commodities,
said consistent buying had emerged from Asia and the Middle East
with prices below $910 an ounce.
"This is supportive, but it wouldn't hold a massive long
liquidation," he said. "It looks like with lower oil prices you
would expect some more liquidation."
"A fall would be (limited) by physical buying, but I think
if $902 fails to hold, $875 would be the next stop we would be
looking for," he added.
OIL SLIPS
Other commodities also weakened. Oil, widely seen as the
bellwether of the asset class, slipped more than $1 a barrel on
Friday as economic pessimism deepened and traders worried about
new rules to curb speculation. []
Meawhile platinum <XPT=> touched a low of $1,085, its
weakest since May 4, before moving up to $1,102.50 an ounce
versus $1,105, while palladium <XPD=> was at $231.50 versus
$233.
Commerzbank trader Rory McVeigh said platinum was suffering
along with other dollar-priced commodities from currency
effects. "Nearby support is around $1,084, so we have to see if
that holds," he said.
Silver <XAG=> slipped to a near ten-week low, pressured by
strength in the dollar and reflecting losses in industrial
metals such as copper on the weaker economic outlook.
Silver touched a low of $12.53 an ounce, its weakest level
since May 4, and was later at $12.60 an ounce against $12.82.
The metal often mirrors moves in gold, but being a smaller
market, outperforms them.
"We expect more silver than gold selling in the current
environment," said Standard Bank in a note. "Silver support is
at $12.60 and $12.56, with resistance at $12.83 and $13.00."
(Reporting by Jan Harvey; Editing by Keiron Henderson)
