MILAN, Feb 6 (Reuters) - European shares inched lower in early deals on Monday with Frankfurt's DAX underperforming the broader market on weakness among auto stocks, while precious metals miners were underpinned by higher gold prices.
The pan-European STOXX 600 index was down 0.2 percent by 0823 GMT, while the German blue chip DAX index fell 0.6 percent. The UK's FTSE 100 was flat.
On the DAX, Volkswagen was the biggest loser, down 1.6 percent, after the carmaker was sued by its first big German customer over its diesel-test cheating.
Its fall weighed on the European auto index, which fell 0.9 percent, making it the biggest sectoral faller in Europe.
London-listed Randgold Resources rose 4 percent, topping gainers on the STOXX, after the gold miner posted a 76 percent rise in fourth-quarter profit and said it would raise its annual dividend.
Other precious metal miners were also in demand as gold prices gained for a third day, on technical buying and a weaker dollar. (Reporting by Danilo Masoni, editing by Kit Rees)