* Gold extends losses on falling oil, hits 1-week low
* Platinum drops 2 percent on fears of falling demand
(Updates prices)
SINGAPORE, Sept 2 (Reuters) - Gold fell to its lowest level
in a week on Tuesday as speculators ditched some holdings
following a sharp drop in oil prices and a rally in the U.S.
dollar, which reduced the metal's appeal as an alternative
investment.
Platinum also fell to a one-week low on concerns about
demand for autocatalysts due to poor car sales and a slowing
U.S. economy. Autocatalysts, used to clean exhaust fumes,
account for more than 50 percent of global platinum demand.
Gold <XAU=> fell to $813.45/814.45 an ounce from
$817.15/818.75 an ounce late in London. New York markets were
closed on Monday for the Labor Day holiday.
Gold has lost more than 20 percent in value since spiking
to all-time high of $1,030.80 in March, mainly driven by profit
taking, oil's falls from record highs and a rebounding dollar.
"There's panic selling," said Kazuhiko Saito of Interes
Capital Management in Tokyo, adding that gold could potentially
fall to $800.
"Japanese sales of automobiles in August were below 200,000
cars, so it's very bad figure. Platinum price is under
pressure. It's a very bearish factor," he said.
Saito pegged platinum's downside target at $1,350 an ounce
- a level last seen in late August.
Spot platinum <XPT=> dropped to $1,409.50/1,429.50 an ounce
from $1,439.00/1,451.00 late in London, having hit an intraday
low of $1,407 an ounce.
Automobile sales in Japan, excluding 660cc minivehicles,
tumbled 14.9 percent in August year-on-year to 193,902
vehicles, the Japan Automobile Dealers Association. Sales for
August fell short of 200,000 vehicles for the first time in 37
years. []
Platinum prices have taken a dramatic turn since spiking to
a record high above $2,000 an ounce in March, losing much of
their gains to profit taking and fears of falling demand.
The benchmark platinum contract on the Tokyo Commodity
Exchange, August 2009 <JPLc6>, fell 121 yen per gram to 4,864
yen, with weaker oil prices adding to the selling pressure.
Oil <CLc1> futures steadied above $111 a barrel after slumping
more then $4 on Monday as concerns Hurricane Gustav would cause
lasting damage to the U.S. oil sector eased after the storm
weakened before hitting the Louisanacoast. []
The dollar index <.DXY> climbed 0.8 percent to 77.75 after
hitting an eight-month high of 77.823.
New York gold futures <GCZ8> lost $16.30 an ounce to
$818.90.
Spot palladium <XPD=> fell to $288.50/296.50 an ounce from
$297.00/305.00 an ounce. Silver <XAG=> edged down to
$13.31/13.38 an ounce from $13.40/13.46 an ounce late in
London.
Precious metals prices at 0041 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 813.25 -3.85 -0.47 -2.34
Spot Silver 13.32 -0.09 -0.67 -9.82
Spot Platinum 1408.00 -31.00 -2.15 -7.37
Spot Palladium 288.50 -9.50 -3.19 -21.60
TOCOM Gold 2852.00 -51.00 -1.76 -6.80
19341
TOCOM Platinum 4861.00 -124.00 -2.49 -8.95
7712
TOCOM Silver 467.30 -10.80 -2.26 -13.62
363
TOCOM Palladium 1028.00 -52.00 -4.81 -23.91
376
Euro/Dollar 1.4581
Dollar/Yen 108.29
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Kim Coghill)
