* Bargain hunters lift prices but gold sees resistance at
$940
* Eyes on G8 meeting
* Oil bounces, while euro steady
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, July 8 (Reuters) - Gold regained strength on
Tuesday as bargain hunters resurfaced after the price dropped
to its lowest level in more than a week, but steadier oil could
cap gains.
Silver edged down, palladium firmed while platinum
rebounded after falling to a 1-month low on Monday on fears a
slowing U.S. economy may weaken demand for the metal used in
auto catalysts.
Gold XAU= rose to $926.90/927.70 an ounce from
$925.15/926.35 an ounce late in New York. Gold fell as low as
$914.50 an ounce on Monday, its lowest level since June 27,
amid declines in commodities such as oil and grains.
Investors focused on the three-day annual summit of the
Group of Eight Industrialised nations in Japan, where G8
leaders said the world economy faces uncertainty and downside
risks, including that posed by a sharp rise in oil.
[ID:nTKM002943]
"It seems like all the eyes are on the G8 announcement
whether they will be dealing with oil or the value of the
dollar," said Peter Tse, a dealer at Scotia Mocatta in Hong
Kong.
"If so, if there's anything happening in oil and the
dollar, that would obviously affect the precious metals
market," he said.
Oil CLc1 rose $1.02 to $142.39 a barrel, having fallen
nearly 3 percent on Monday amid signals Iran would be more
flexible in negotiations over its nuclear programme. [O/R]
"The situation in Iran is not yet resolved. We have to see
how the U.S. will react," said Ronald Leung, director of Lee
Cheong Gold Dealers in Hong Kong.
"I think $910 is still supporting gold. Maybe $940 is the
resistance for the time being. It's a bigger range and the
market seems choppy," he said.
Fears of military confrontation over Iran have helped send
oil to record highs, elevating gold's appeal as a hedge against
inflation.
The euro edged down to $1.5695 after falling to a low of
$1.5679, off a high of $1.5735 earlier in the day.
Gold futures for August delivery GCQ8 on the COMEX
division of the New York Mercantile Exchange fell $0.4 an ounce
to $928.4.
Silver XAG= edged down to $17.78/17.83 an ounce from
$17.79/17.84 late in New York.
Spot platinum XPT= rose to $1,985.00/2,005.00 an ounce
from $1,967/1,987 an ounce late in New York. It had dropped to
$1,962.50 an ounce on Monday, its lowest level since early
June, on fears of weakening demand.
"Platinum is a really thin market. Basically, a small
amount of trading could trigger the move in such a thin
market," said Tse of Scotia Mocatta.
Platinum struck a record at $2,290 an ounce in March after
a power crisis in main producer South Africa disrupted mining
and sparked fears of a supply deficit.
Spot palladium XPD= rose to $445.00/450.00 an ounce from
$443.00/451.00 an ounce.
The most active Tokyo platinum contract for June 2009
delivery <0#JPL:> on the Tokyo Commodity Exchange rose 32 yen
per gram to 6,771 yen.
Precious metals prices at 0544 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 927.25 1.80 +0.19 11.35
Spot Silver 17.80 0.05 +0.28 20.51
Spot Platinum 1985.00 18.00 +0.92 30.59
Spot Palladium 445.00 2.00 +0.45 20.92
TOCOM Gold 3220.00 0.00 +0.00 5.23
38253
TOCOM Platinum 6767.00 28.00 +0.42 26.75
20236
TOCOM Silver 619.80 -1.90 -0.31 14.57
1217
TOCOM Palladium 1572.00 -5.00 -0.32 16.36
1238
Euro/Dollar 1.5702
Dollar/Yen 106.95
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
