(Updates prices)
By Lewa Pardomuan
LONDON, May 21 (Reuters) - Gold rallied to its highest level
in a month on Wednesday after oil struck another record over
$130 a barrel, and platinum jumped more than 3 percent as strong
fundamentals and a weaker dollar spurred buying.
Spot gold <XAU=> hit a high of $927.00 an ounce, its highest
since April 21, before slipping to $922.70/923.70 an ounce on
profit taking, still higher than $920.20/921.40 late in New York
on Tuesday.
"I am looking at $935-$940 for nearby resistance
After that, we will be looking at $950-$955," said Adrian Koh,
an analyst at Philip Futures in Singapore. "Technically, it
looks gold and platinum could go up some more."
Gold was still more than $100 below a record high of
$1,030.80 hit on March 17.
Spot platinum <XPT=> rallied to a high of $2,198.50 an
ounce, its highest level since March 6, up from $2,133/2,153 in
New York.
Platinum, used in jewellery and auto catalysts, powered to a
record at $2,290 an ounce on March 4 after a power crisis in
main producer South Africa disrupted mining and sparked fears of
a supply deficit.
"I have to say the strong short-term uptrend on platinum is
still intact and there's probably more upside to come and that
could probably go well with more upside on gold," said Koh.
Platinum was likely to head towards record highs of
$2,290-$2,300 an ounce after it broke a key resistance of
$2,192, said Koh.
Precious metals refiner Johnson Matthey <JMAT.L> has said
platinum may spike to a record high of $2,500 an ounce this year
and see another supply deficit due to production shortfalls and
strong demand.
Oil <CLc1> rallied to a record high of $130 a barrel on the
back of a weak dollar and concern about supplies.
The euro <EUR=> shot up to $1.5773, hitting its highest
level since April 24.
Rising energy prices boost gold's appeal as a hedge against
inflation, and a weak dollar elevates bullion's appeal as an
alternative investment. Gold's gains often lift other precious
metals.
"If (gold) can hold this sort of $915 level in the next
couple of days, I would have thought it can push back up to
$950," said David Thurtell, analyst at BNP Paribas, who pegged
support at the 50-day moving average around $912.
"Gold could go back over $1,000, probably in Q3."
Gold prices above $1,000 an ounce are sustainable because of
strong consumer demand in Asia, with supplies remaining tight as
higher costs force miners to scrap marginal projects, a Barrick
Gold Corp <ABX.TO> executive said on Tuesday. []
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange added $0.2 to $920.4 an
ounce in electronic trading, having risen on Tuesday to $924.10,
the highest level since April 23.
Spot silver <XAG=> rose to $17.69/17.74 an ounce from
$17.59/17.66 late in New York, having earlier risen to a high of
$17.85 -- its highest level since April 23.
Spot palladium <XPD=> edged down to $442.50/450.50 versus
$443.00/448.00 in late New York.
(Editing by Editing by )
