Array

TOKYO, July 31 (Reuters) Gold advanced on Tuesday after US shares recovered the previous day, while Japanese gold futures jumped 1 percent due to falls in the yen against the dollar.

-- Spot gold was trading at $666.00/666.60 an ounce by 0039 GMT, up from $664.60/665.40 late in New York on Monday.

-- But gold lacked strong upward momentum as investment funds remained nervous about taking new positions following recent losses in bullion, with the outlook for global equities markets remaining unclear.

-- Dealers kept an eye on the dollar, which slipped against the euro as volatile foreign exchange markets took their lead from weakness in equities and credit markets.

-- The yen's fall against the dollar helped Japanese precious metals prices.

-- Tokyo Commodity Exchange gold prices rebounded on short covering after closing down in the last six sessions, losing about 5.6 percent over the period.

-- The benchmark June 2008 contract on the Tokyo Commodity Exchange was at 2,578 yen a gram, up 25 yen or 1 percent from Monday's close of 2,552 yen.

-- Spot platinum rebounded, supported by the strength in TOCOM platinum futures .

-- Platinum has been placed under pressure after Nissan Motor Co. said on Friday it had developed a catalyst for gasoline cars that halves the use of precious metal components to clean tail-pipe emissions.

-- Key June 2008 TOCOM platinum rose 0.6 percent from the previous day.

-- Cash platinum jumped to $1,289/1,294 ounce from $1,268/1,272 in New York.

-- Silver rose to $12.90/12.93 an ounce from $12.85/12.90 late in New York.

REUTERS SAM VP0708