US gold ends up as dollar falls, eyes inflation

NEW YORK, June 9 (Reuters) - U.S. gold futures rebounded
from the previous session to end higher on Tuesday as the
dollar dropped and oil jumped, and signs of economic recovery
should attract further inflation-hedge buying
.

For the latest detailed report, click on [GOL/].

GOLD

* August GCQ9 settled up $2.20 at $954.70 an ounce on the
COMEX division of the New York Mercantile Exchange.

* Ranged from $948.30 to $964.50.

* Gold supported by a weaker dollar against the euro, which
rose above $1.40, as investors questioned whether the U.S.
economy is strong enough to justify higher interest rates by
the year end. [USD/]

* The dollar decline followed by a sharp rally in the past
two sessions, combined with a better tone in the equities
market, prompted buying in investments perceived as riskier,
including gold - traders.

* The previous session's sharp sell-off was overdone, and
the positive inflation outlook is still supporting the market -
Rob Kurzatkowski, futures analyst at optionsXpress.

* The recent volatility of the gold market has us convinced
that the sidelines are a good place to hide - Dennis Gartman,
independent investor and publisher of the Gartman Letter.

* Gold prices are due for a continuation of a small
correction, and trade will likely to focus on the direction of
the stock market - Tom Pawlicki, precious metals and energy
analyst at MF Global.

* COMEX estimated final volume at 86,994 lots.

* COMEX gold open interest up 2,940 at 393,900 lots as of
June 8.

* Gold/oil ratio at 13.67, lower than the 13.86 of the
previous session.

* Spot gold XAU= traded at $954.45 at 2:08 p.m. EDT (1808
GMT), up 0.4 percent from its previous session.

* London gold fix XAUFIX= at $956 an ounce.

SILVER

* July SIN9 finished up 18.5 cents, or 1.2 percent, at
$15.140 an ounce, tracking gold's gains.

* Ranged from $14.750 to $15.345.

* COMEX estimated final volume at 28,369 lots.

* Spot silver XAG= was at $15.14 an ounce, up 1.5 percent
from its previous finish.

* London silver fix XAGFIX= at $14.930 an ounce.

PLATINUM

* July PLN9 ended up $13.90, or 1.1 percent, at $1,257.90
an ounce, bouncing from the previous session's losses.

* Auto demand will continue to be a large part of demand
application for platinum group metals, as even hybrid vehicles
still require PGM-based catalyst for their gasoline or diesel
engines - UBS Investment Bank.

* Battery-only vehicles, however, would threaten PGM usage,
but cost-effective battery technology remains far short of
practical application - UBS.

* The global car industry accounts for 60 percent of total
platinum demand for use in automobile catalytic converters.

* Spot platinum XPT= at $1,250.50 an ounce, up 0.7
percent from its previous session.

PALLADIUM

* September PAU9 closed up $5.05, or 2 percent, at
$257.05 an ounce, following platinum's rise.

* Spot palladium XPD= was at $253 an ounce, up 2.2
percent from its previous finish.

Close Change Pct 2008 YTD

Chg Close Pct Chg
US gold GCQ9 954.70 2.20 0.2 884.30 8.0
US silver SIN9 15.140 0.185 1.2 11.295 34.0
US platinum PLN9 1257.90 13.90 1.1 941.50 33.6
US palladium PAU9 257.05 5.05 2.0 188.70 36.2
Prices at 2:08 p.m. EDT (1808 GMT)
Gold XAU= 954.45 3.45 0.4 878.200 8.7
Silver XAG= 15.14 0.23 1.5 11.30 34.0
Platinum XPT= 1250.50 8.50 0.7 924.50 35.3
Palladium XPD= 253.00 5.50 2.2 184.50 37.1
Gold Fix XAUFIX= 956.00 12.25 1.3 836.50 14.3
Silver Fix XAGFIX= 14.930 0.090 0.6 14.760 1.2
Platinum Fix XPTFIX= 1246.00 0.00 0.0 1529.00 -18.5
Palladium Fix XPDFIX= 251.00 0.00 0.0 365.00 -31.2
-------------------------------------------------------------
Prices in dollars per ounce.
2008 close for U.S. gold second contract month, U.S. silver and
palladium third contract months and U.S. platinum fourth
contract month.
(Reporting by Frank Tang; Editing by Lisa Shumaker)