Gold prices dip in Europe

Gold headed lower in Europe on Tuesday afternoon after weaker-than-expected US inflation data created only a brief drag on the dollar, traders said.
Spot gold fell to $401.60/402.10 an ounce by 1512 GMT after a short spike to $403.40 following the US consumer price index data.
That compared with $402.50/403.00 quoted late in New York on Monday.
Headline consumer prices fell 0.1 percent in July, compared with economist forecasts for a rise of 0.1 percent, causing the dollar to drop and highlighting gold's appeal as an alternative investment.
Dealers had said that the weaker inflation numbers could mean the US Federal Reserve would be more patient over implementing dollar-boosting interest rate rises.
But the dollar soon recovered ground as investors considered the possibility that feeble price pressures might be temporary.
"The US consumer prices were surprisingly low, but right now the gold market is coming off again on the back of a strengthening dollar," a European trader said.
"At the moment I think it's (gold) strong enough to stay above $400 as long as there is no fresh round of euro selling," he added.
The euro was last quoted at $1.2322 after rising to session highs around $1.2387.
Gold has seen fairly volatile trade over the past few weeks with the market flipping either side of $400, although prices are still way off 15-year peaks seen in January above $430.00.
Support has come mainly from a weaker dollar and global security fears.
Platinum was slightly weaker after the market touched a fresh four-month high in Asian trade on strong demand for auto catalysts.
Spot platinum moved down to $874.00/879.00, from $881.00/886.00.
UBS Investment Bank said in a daily report that thin market conditions were continuing to influence the market's large trading band, warning of a large drop once sentiment turned.
"Once the specs are looking to take profit, $850 will be tested rather quickly," UBS said.
Platinum miner Lonmin Plc said on Tuesday workers had returned to their jobs after they went on an unofficial strike last Friday at the Karee mine in South Africa.
Weaker sentiment on gold spilled into silver, which tracked back to $6.65/6.68 from $6.69/6.72 in New York late on Monday.
Palladium bucked the trend of the other metals, firming slightly to $213.00/218.00 versus $211.50/217.50 late in New York.