UPDATE 6-Gold slips on oil but seen ready to rally

LONDON, April 30 (Reuters) - Gold ended lower by afternoon in New York on Monday, tracking weaker oil prices, but dealers said the market could rally later this year.
Prices had fallen three percent in a week from an 11-month high of $693.60 an ounce, but a weaker dollar outlook would revive gold's appeal to investors.
Gold fell as low as $674.40 an ounce before rising to $678.20/678.70 by 3:25 p.m. EDT (1925 GMT), against $681.30/681.80 in New York late on Friday, when it gained nearly $7 on news of a foiled al Qaeda-linked plan to attack Saudi Arabia's oil facilities.
Most-active gold for June delivery on the COMEX division of the New York Mercantile Exchange settled up $1.70 at $683.50 an ounce, traded in a tight $6-range from $678.80 to $684.90.
"We are building a base around $675. Energy prices are a bit softer today and there is some pressure coming from the dollar," a European analyst said.
The dollar fell toward record lows against the euro, on track for the largest monthly decline since November. A lower greenback makes dollar-denominated assets like gold cheaper for investors holding other currencies.