NEW YORK, June 1 (Reuters) - U.S. gold futures turned lower on Monday as the dollar pared initial losses, but bullion remained within striking distance of the $1,000 level as currency weakness could still bolster the status of gold as a hedge against a falling dollar. For the latest detailed report, click on [GOL/]. GOLD * August GCQ9 down $2.20 at $9781.10 an ounce at 10:27 a.m. EDT (1427 GMT) on the COMEX division of the New York Mercantile Exchange. * Ranged from $975.40 to $990.20, which marked the highest price since Feb. 25. * Gold boosted as the dollar tumbled to its lowest level so far this year against a basket of currencies .DXY and the euro , as economic optimism prompted funds to buy riskier assets. * August futures largely ignored a Wall Street rally as the broad equities index S&P 500 .SPX rose over 2 percent, above its 200-day moving average. [.N] * Dollar weakness and worries about fiat money because of government policies to stimulate the economy fueled gold's rise - Caesar Bryan, portfolio manager of GAMCO Gold Fund. * Investors viewed gold as insurance against the falling value of their dollar-denominated portfolios. The inverse relationship between gold and the dollar broke down early this year as both assets benefited from a flight to safety. * Net long noncommercial gold futures position jumped nearly 20 percent to 177,308 lots, as open interest rose 8 percent to 396,965 lots in the week up to May 26 - CFTC report. * Gold/oil ratio at 14.50, lower than the 14.85 of the previous session. * Spot gold traded at $976.20 an ounce, down 0.3 percent from its late Friday quote in New York. * London gold fix $981.75 an ounce. SILVER * July futures SIN9 edged up 7.5 cents at $15.685 an ounce, driven by good investment buying - traders. * Ranged from $15.640 to $15.970, which marked the highest price since August last year. * ETF Securities said holdings of its London silver-backed exchange-traded commodity fund rose to a record 19.99 million ounces. [ID:nL1549848] * Spot silver was at $15.67 an ounce, down 0.4 percent from its previous finish. * London silver fix at $15.86 an ounce. PLATINUM * NYMEX July platinum PLN9 up $23.30, or 2 percent, at $1,219.30 an ounce amid economic optimism. * Platinum rose in spite of a bankruptcy filing by General Motors Corp (GM.N), which put the U.S. automaker under government ownership. [ID:nN01398575] * The global car industry accounts for 60 percent of total platinum demand for use in automobile catalytic converters. * Spot platinum at $1,214.00 an ounce, up 2.3 percent from its late Friday quote. PALLADIUM * September palladium PAU9 up $3.65, or 1.5 percent, at $241.10 an ounce, tracking platinum's gains. * Spot palladium was at $238.00 an ounce, up 1.7 percent from its previous finish. (Reporting by Frank Tang; editing by Jim Marshall)

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