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TOKYO, Aug 1 (Reuters) Gold was weaker on Wednesday as investors continued to focus on equities markets for trading cues after a sell-off in stocks pulled bullion down last week, while a stronger yen dampened yen-based Tokyo gold futures.

Trading was lacklustre as uncertainty over U.S. stocks kept investors on the sidelines, dealers said. Higher stocks have helped buying of riskier assets including gold, but the metal is often less preferred than bonds or cash at a time of volatile equity markets.

Spot gold stood at $663.40/664.20 an ounce as of 0344 GMT, down from $665.50/666.30 late in New York on Tuesday.

''Gold is left untouched given the current mood of risk aversion,'' said Kaname Gokon, deputy general manager at Okato Shoji Co. Ltd.

Tokyo's benchmark Nikkei stock average fell 1 percent on Wednesday after a tumble on Wall Street, where worries about the U.S. credit market resurfaced with news that mortgage lender American Home Mortgage Investment Corp. may have to liquidate assets.

While firm oil prices were supportive, continued volatility in stock markets made investors reluctant to buy commodities, an alternative asset class.

U.S. oil futures stayed within sight of a new record high on Wednesday.

On Tuesday, U.S. crude rose more than $1 to hit a record settlement above $78 a barrel on expectations that rising refinery demand will further drain inventories in top consumer the United States.

Dealers kept an eye on the dollar, which has gained some ground since it hit last week a 15-year low against a basket of major currencies and a record low against the euro Gold often moves in the opposite direction of the dollar.

''If the dollar takes another dive, gold would have been in favour. But that's not the case for now,'' Gokon said.

Yet the yen's firmness against the dollar weighed on Japanese precious metals prices.

The dollar stood around 118.45 yen inching down from levels in late U.S. trading on Tuesday, hovering near a three-month low of 118.02 yen hit on electronic trading platform EBS on Friday.

The benchmark gold futures contract on the Tokyo Commodity Exchange for June 2008 delivery ended the morning session at 2,562 yen a gram, down 11 yen or 0.4 percent from the previous close.

It earlier fell as low as 2,555 yen, off an almost four-month low for any benchmark of 2,542 yen marked on Monday.

Other precious metals tracked gold slightly lower.

Cash platinum traded at $1,288/1,293 an ounce, slightly down from $1,290/1,294 in New York.

Cash silver was at $12.85/12.88 an ounce, versus $12.90/12.94 late in New York. Palladium was little changed at $362/366 an ounce from $363/367 in New York.

Precious metals prices at 0338 GMT Last Net Change Pct Move Turnover (lots) TOCOM Gold 2562.00 -11.00 -0.43 26577 TOCOM Platinum 4916.00 -12.00 -0.24 17948 TOCOM Silver 493.40 -1.00 -0.20 1103 TOCOM Palladium 1412.00 -13.00 -0.91 184 Spot Gold 663.20 Spot Platinum 1288.00 Spot Silver 12.84 Spot Palladium 362.00 Change so far in 2007 Metal Latest bid End prev year Pct Move TOCOM Gold 2562.00 2445.00 +4.79 TOCOM Platinum 4916.00 4254.00 +15.56 TOCOM Silver 493.40 493.30 +0.02 TOCOM Palladium 1412.00 1255.00 +12.51 Spot Gold 663.20 636.10 +4.26 Spot Platinum 1288.00 1132.00 +13.78 Spot Silver 12.84 12.85 -0.08 Spot Palladium 362.00 332.00 +9.04 Euro/Dollar $1.3661 Dollar/Yen 118.38 TOCOM prices in yen per gram, except for silver which is in yen per 10 grams, spot prices in $ per ounce.

REUTERS SR BD1119