* Gold, oil erase earlier gains as demand woes persist * Commods under pressure after rally boosted by Fed rate cut * Copper down 6 pct, gold off 1-week high, oil below $67 (Recasts, updates prices and comments, pvs SINGAPORE) By Humeyra Pamuk LONDON, Oct 30 (Reuters) - Gold and oil fell on Thursday, giving up gains, as the dollar trimmed losses against the euro and recession threats offset a brief outbreak of optimism about the global economy fuelled by a U.S. interest rate cut. "From a macroeconomic point of view, nothing has changed, said Jeremy East, global head of commodity derivatives at Standard Chartered, adding the worries about global growth still continued to haunt investors. The widely anticipated 50 point interest rate cut by the Federal Reserve on Wednesday had earlier pushed gold prices up 3 percent to a one-week-high as the dollar lost ground against the euro and sterling. [FRX/] However, the euro trimmed its gains against the dollar after U.S. data on Thursday that showed the U.S. economy had shrunk slightly less than expected in the third quarter. [ID:nN30534111] Spot gold was slightly lower at $751.50 an ounce by 1402 GMT from $754.30 an ounce in New York on Wednesday, after hitting a one-week high of $776.30 an ounce. Silver and palladium rose to their highest in two weeks and platinum hit a 1-week high earlier. "It was a dollar-inspired short-covering rally," East said. "Over the last few weeks everyone's been liquidating (their positions) and funds have been playing it on the short side," he said. Commodity prices across the board have been hammered in the last couple of months, with oil and copper more than halving since July, as the investors, desperate for cash, dumped riskier assets. Oil is down by 30 percent so far this month while gold, down nearly 12 percent, is on track for its biggest monthly decline since 1983. U.S. crude CLc1 fell 53 cents to $66.97 a barrel, off an earlier high of $70.60, while London Brent crude LCOc1 was down 90 cents at $64.57. Industrial metals failed to extend their rally from Wednesday as the market focused on demand worries. Copper tumbled around 6 percent, dragging down the other metals. London Metal Exchange copper MCU3 for delivery in three months fell 6 percent, or $280, to $4,375/4,395 after Wednesday's $525 gain. "What we have seen over the last few days is a short-covering rally in a situation where people are still very negative about the outlook," said Kevin Norrish, analyst at Barclays Capital. Copper has gained around 26 percent this week but is also on track for its biggest monthly decline, a fall of about 25 percent, since 1977. A weak dollar gave a brief boost to soft commodities such as cocoa, coffee and sugar but later they erased the gains. January robustas LKDF9 were down $7 at $1,635 per tonne while London December LSUZ8 white sugar futures were down 0.3 percent, to $328.9 per tonne. U.S. soybeans and grains rose in Asian trading after the cut in interest rates by the Fed, but profit-taking in Europe took the shine off earlier gains and pushed wheat and corn back into the red. Paris wheat futures were easier, with the Euronext November wheat contract BL2X8 down 0.50 euro at 145.00 euro. "We have a currency story today," one European trader said. (Additional reporting by Clarence Fernandez in SINGAPORE, Editing by Anthony Barker)

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