UPDATE 3-Jewellery, investment demand buoy gold

* Jewellery and investment demand boost gold

* Equity investors seek safety in gold

* Recession, deflation knock sentiment (Recasts, adds comment/detail, changes dateline, pvs Singapore)

By Pratima Desai

LONDON, Nov 20 (Reuters) - Gold prices rose on Thursday, buoyed by interest from jewellery makers and investors seeking safety, but a stronger dollar and lower oil prices are expected to weigh on sentiment.

Spot gold <XAU=> was higher at $743.30/745.30 an ounce at 1119 GMT from $732.40 in New York late on Wednesday when it touched $762.30 an ounce, its highest in more than a week.

Data from the World Gold Council showing an 18 percent jump in demand for gold to 1,334.4 tonnes and a 56 percent rise in investment demand to 382.1 tonnes in the third quarter has helped sentiment. [ID:nN19328642]

"Investment demand for gold should hold up because there is strong risk aversion in the markets right now. That's why we are optimistic gold will hold up," Barbara Lambrecht, analyst at Commerzbank, said.

Gold is used as a hedge against turmoil in financial markets -- equity prices in Europe and the United States are trading at their lowest levels in more than five years. [.EU] [.N]  Continued...