UPDATE 2-Gold edges down as oil rally halts

(Updates prices)

TOKYO, May 13 (Reuters) - Gold slipped on Tuesday, weighed
down as a halt in crude oil's climb dented its appeal as a hedge
against inflation.

Spot gold <XAU=> traded at $875.60/876.60 an ounce as of 0905
GMT, compared with $884.60/886.00 late on Monday in New York.

Uncertainty over the dollar's direction also kept investors
from trading gold actively.

The dollar was steady on Tuesday in subdued trade, with many
investors looking to U.S. retail sales figures later in the day
to decide if the Federal Reserve is likely to keep interest rates
steady in the months ahead. [FRX/]

The euro pared recent gains against the dollar after its
rally failed to breach $1.56 the previous day, hurting the
appetite of some investors to buy gold in hopes of a downtrend in the dollar, traders said.

Against the yen, the dollar was little changed on the day at
103.70 yen <JPY=>. The euro eased slightly to $1.5470 <EUR=>.

"We are braced for the next clue to trade with," said Kaname
Gokon, deputy general manager at Okato Shoji Co's research
section.

"Technically, gold's range has narrowed to between $875 and
$888. It looks challenging now to test either side."

U.S. crude oil futures fell below $124 per barrel on Tuesday, extending losses from New York trade as active profit-taking
kicked in following surges to record highs in the past week.

NYMEX crude for June delivery CLc1 fell 58 cents to $123.65
a barrel in Globex electronic trading. It had reached a fresh
intraday record high of $126.40 on Monday.

The most active June gold futures contract GCM8 on the
COMEX division of the New York Mercantile Exchange fell $7.9 to
$877.0 an ounce.

Yen-based gold futures for distant April delivery <0#JAU:> on the Tokyo Commodity Exchange closed down 17 yen a gram at 2,942
yen as the sentiment weakened in line with a fall in cash gold.

Spot platinum <XPT=> stood at $2,070/2,080 an ounce, sharply
lower than $2,099/2,119 in New York. Last week it reached $2,095, the highest since March 17.

Palladium <XPD=> was at $436.00/441.00 an ounce, little
changed from $436/444 in late New York. Silver <XAG=> was at
$17.01/17.07 an ounce, down from $17.12/17.18 in New York.
Precious metals prices at 0911 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 876.30 -5.60 -0.63 5.24
Spot Silver 17.02 -0.10 -0.58 15.23
Spot Platinum 2070.00 -22.50 -1.08 36.18
Spot Palladium 434.00 -2.00 -0.46 17.93
TOCOM Gold 2942.00 -17.00 -0.57 -3.86 35068
TOCOM Platinum 6676.00 57.00 +0.86 25.04 25701
TOCOM Silver 574.60 11.10 +1.97 6.21 780
TOCOM Palladium 1490.00 -6.00 -0.40 10.29 1157
Euro/Dollar 1.5479
Dollar/Yen 103.59
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Risa Maeda)