UPDATE 2-Gold off low, but still below $800 on dlr, oil

* Gold finds support after falling near $790 an ounce

* Asian buyers' appetite strong for physical gold on dips

* Tokyo platinum down 6 pct on concerns over demand (Update prices to late afternoon)

By Chikafumi Hodo

TOKYO, Sept 5 (Reuters) - Gold edged up on Friday on solid physical purchases by Asian investors after slipping near $790 an ounce, but the metal stayed under pressure on the dollar's strength and weaker oil prices.

Investors were also shaken by sharp falls in equities, prompting them to shift to dollars while pulling funds out of risky assets, including precious metals, but Asian bargain hunters were detected buying gold on dips.

"Gold started lower in Asia, falling near $790, but around the level we are seeing a big amount of physical gold buying from Asian players," said Yuichi Ikemizu, managing director at Standard Bank in Tokyo.

By 0604 GMT, spot gold <XAU=> was at $798.10/799.30 per ounce, down from $796.15/797.75 late in New York on Thursday. It fell as far as $790.35 on Friday.

COMEX gold futures were also off lows after settling down $5 in New York the previous day. The most active December contract GCZ8 was trading at $802.5, down $0.7 or 0.1 percent from the New York settlement.

The benchmark August 2009 gold contract <0#JAU:> on the Tokyo Commodity Exchange was trading at 2,750 yen per gram, down 108 yen or 3.8 percent from Thursday.

Cash gold fell as low as $789.05 on Wednesday, its weakest in two weeks and near its nine-month low around $773 hit in mid-August.

Buyers in India, the world's largest consumer, bought in large volumes on price dips ahead of the peak festive season in October.

Investment bank UBS, one of the largest gold dealers, said that over the last two weeks, it had seen its strongest physical sales in 20 years.

But market participants were keen to see if further bargain hunting would emerge in the physical market.

Gold prices have been put under pressure, slipping about 5 percent over the past week, reflecting the strength of the dollar and plunges in oil prices.

The dollar rose against the euro <EUR=> after U.S. service sector data came in stronger than forecast, then extended its gains after European Central Bank President Jean-Claude Trichet said the euro zone was in a period of weak economic activity.  Continued...