US gold ends down but dollar weakness limits losses

NEW YORK, Sept 9 (Reuters) - U.S. gold futures ended lower
on Wednesday, retreating from prices above $1,000 an ounce in
the previous session, but worries about dollar's gradual
deterioration amid growing risk appetite should continue to
boost bullion's appeal as a currency hedge.

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

GOLD

* December gold GCZ9 settled down $2.70 at $997.10 an
ounce on the COMEX division of the New York Mercantile
Exchange.

* Ranging from $990.30 to $1,005.

* The U.S. dollar fell to a near one-year low against a
basket of major currencies, extending sharp decline from the
previous day, as higher global equities bolstered risk
appetite. [USD/]

* The U.S. dollar direction is likely to determine gold's
near-term path. Should further questions concerning the
dollar's role as a global reserve currency arise, gold is
likely to rally near term - James Steel, chief commodities
analyst at HSBC.

* Analysts also cautioned that the price of gold could be
susceptible to correction at near record high levels, as some
believed the market was overbought.

* The likely response to gold at $1,000 an ounce will be
for the recycled scrap market to increase and jewelry demand to
contract. In the longer term, this may undermine the rally -
Steel.

* Barrick Gold (ABX.TO)(ABX.N), the world's top gold miner,
will issue $3 billion in stock to eliminate all of its
fixed-price gold hedges and a portion of its floating hedges.
However, analysts said the deal would not have a material
impact on the gold market. [ID:nN08295810]

* ETF Securities Ltd, an operator of commodity
exchange-traded funds, said its U.S.-based Physical Swiss Gold
Shares will begin trading on Wednesday on the New York Stock
Exchange. [ID:nN09343620]

* COMEX estimated 1 p.m. volume at 107,019 lots.

* Gold/oil ratio at 13.89, down from the previous session's
13.98.

* Spot gold XAU= at $988.75 an ounce at 2:21 p.m. EDT
(1821 GMT), against $995.20 in the previous session in New
York.

* London afternoon gold fix XAUFIX= was at $999.50 an
ounce.

SILVER

* December silver SIZ9 ended down 4 cents at $16.470 an
ounce, following the weakness of other base metals such as
copper.

* Silver futures recently have outperformed gold, helped by
better economic sentiment. Usually less-liquid silver has the
characteristics of both precious and industrial metals.

* Ranged from $16.255 to $16.750 an ounce.

* COMEX estimated 1 p.m. volume at 27,288 lots.

* Spot silver XAG= at $16.29 an ounce, versus its
previous close of $16.41.

* London silver fix XAGFIX= was at $16.24 an ounce.

PLATINUM

* October platinum PLV9 finished up $1.80 at $1,291.40 an
ounce as better economic sentiment supported platinum group
metals, which are largely used as industrial metals.

* Spot platinum XPT= at $1,275 an ounce against $1,283.

PALLADIUM

* December palladium PAZ9 closed down $3.55 at $295.05 an
ounce, retreating from the previous session's contract high.

* Spot palladium XPD= at $290 an ounce, against its
previous finish of $294.

Close Change Pct 2008 YTD

Chg Close Pct Chg
US gold GCZ9 997.10 -2.70 -0.3 884.30 12.8
US silver SIZ9 16.470 -0.040 -0.2 11.295 45.8
US platinum PLV9 1291.40 1.80 0.1 941.50 37.2
US palladium PAZ9 295.05 -3.55 -1.2 188.70 56.4
Prices at 2:35 p.m. EDT (1835 GMT)
Gold XAU= 990.85 -4.35 -0.4 878.200 12.8
Silver XAG= 16.31 -0.10 -0.6 11.30 44.3
Platinum XPT= 1274.00 -9.00 -0.7 924.50 37.8
Palladium XPD= 290.00 -4.00 -1.4 184.50 57.2
Gold Fix XAUFIX= 999.50 -1.25 -0.1 836.50 19.5
Silver Fix XAGFIX= 16.240 -0.510 -3.0 14.760 10.0
Platinum Fix XPTFIX= 1286.00 0.00 0.0 1529.00 -15.9
Palladium Fix XPDFIX= 294.50 0.00 0.0 365.00 -19.3
(Reporting by Frank Tang; Editing by Lisa Shumaker)