By Lewa Pardomuan SINGAPORE (Reuters) - Gold inched up on Wednesday after the euro strengthened against the U.S. dollar and oil rebounded, with a tentative deal to bailout U.S. automakers offering additional support as it lifted equities. Asian shares struck a one-month high on hopes governments worldwide will bail out ailing industries and increase spending as they fight back against a worsening global economic downturn. Gold was trading at $777.75 an ounce, up $2.25 from New York's notional close on Tuesday. A sell-off in equities had forced investors to ditch gold to cover losses, sending bullion to a 13-month low around $680 an ounce late in October. "I guess the potential for the upside is there. Technically, gold should break the $780 resistance level to sustain the uptrend because we've also seen profit taking in Asia," said a dealer in Hong Kong, referring to Monday's intraday high. The White House and congressional Democrats reached an agreement in principle on a $15 billion proposal for bailing out U.S. automakers but final issues needed to be resolved. The Nikkei .N225 rose 2.6 percent on the bailout news but fears of deflation remained firmly in place, with China's wholesale price inflation collapsing last month, undershooting expectations by a wide margin. The euro firmed to $1.2949, spurring buying from speculators in Asia. Gold is struggling to sustain an uptrend since hitting a two-month high of $931 in early October, mainly due to weakness in oil and equities. Bullion was 25 percent below a lifetime high of $1,030.80 struck in March, when fears of rising energy costs spurred buying. "There's bargain hunting in Japan because OPEC will cut production next week. So we also see short-covering in the crude oil market," said Kazuhito Saito of Interes Capital Management in Tokyo. Oil rebounded by more than $1 a barrel to around $43 in bargain hunting on Wednesday, after slumping 4 percent overnight on the back of lowered forecasts for U.S. energy demand and fears of a deepening global recession. OPEC, facing a slide in oil prices since July of over $100 a barrel, has already agreed to cut about 2 million barrels per day of output to support prices and members are leaning toward more supply cuts at the December 17 meeting in Algeria. The U.S. auto bailout relief helped lift platinum but worries over demand lingered, with prices already falling more than 60 percent since hitting a record of $2,290 in March due to falling oil prices and recently, dismal car sales. Platinum, which is used in auto catalytic converters, was trading at $811.50 an ounce, up $8 from New York notional close. "It seems the news supports platinum but we are also expecting global auto production to slow down as well because of the recession. The support is rather limited," said the dealer in Hong Kong.

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