Gold eased on Wednesday, giving up earlier gains, as the dollar recovered losses against the euro after U.S. durable goods data failed to impress, tempering appetite for the metal as an alternative asset.

But prices remained rangebound as traders awaited clearer direction from the currency markets.

Spot gold was bid at $941.80 an ounce at 1523 GMT, against $943.55 an ounce late in New York on Tuesday. Earlier it rose as high as $949.85.

U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange were down $1.8 at $944.20 an ounce.

“We are probably going to stay fairly rangebound,” said Standard Bank analyst Walter de Wet. “We would have to see some decent dollar weakness for gold to move above $956-960.”

The dollar rose versus the euro and a currency basket, reversing early losses, after durable goods numbers from the United States.

The data showed June orders for durable goods, excluding transportation, rose less than forecast despite overall orders posting their largest advance since July 2007.

The report, however, was tempered by data showing a jump in U.S. new home sales last month that fuelled some selling in the dollar versus the euro.

U.S. stocks advanced after they July new home sales data, while European stocks gave up early gains to fall by early afternoon.

Demand from buyers of physical bullion remained sluggish as buyers awaited further price falls.

“Physical demand has dried up, but we are expecting more buying around $930-925,” said Commerzbank senior trader Michael Kempinski.

The world’s largest exchange-traded fund, the SPDR Gold Trust , said its holdings fell another 4.58 tonnes on Tuesday, bringing its total outflow to 21.4 tonnes in the last four weeks.

LONDON ETF HOLDINGS RISE

But London-based ETF Securities said it saw the biggest ever one-day inflow into its ETF Physical Gold product on Aug. 25. Its holdings rose 211,500 ounces to 3.190 million ounces on Tuesday.

On the supply side, the Russian Gold Industrialists’ Union reported a 21 percent rise in gold output from Russia, the world’s fifth largest producer of the yellow metal, in the first seven months of the year.

Platinum received an early fillip from a strike at Impala Platinum’s Rustenberg mine in South Africa, where workers rejected the company’s latest pay offer on Wednesday.

Prices rose as high as $1,249.50, but later eased to $1,233 an ounce from $1,239 as investors took profits. “The price of platinum reacted only marginally to the news,” said Commerzbank in a note.

An Implats spokesman said more than 20,000 workers were involved in the strike, ignoring a weekend call from the National Union of Mineworkers to suspend the action.

Separately, Aquarius Platinum said contract workers at its Kroondal and Marikana operations in South Africa had launched a strike.

Palladium was at $283 against $286. Silver was at $14.24 an ounce against $14.24.

Aug 26 (Reuters)