* Money pours into commodities, lifts precious metals
* Platinum at 6-month high, lifts palladium
* CME to launch mini gold, silver futures amid demand
(Recasts, updates with quotes, closing prices, adds NEW YORK
to dateline)
By Frank Tang and Humeyra Pamuk
NEW YORK/LONDON, March 26 (Reuters) - Gold ended higher
after a volatile session on Thursday, underpinned by growing
investment appetite and gains in other commodities such as oil
and metals.
Platinum rose to its highest price in six months as dollar
weakness over the past couple of days prompted industrial and
bargain-hunting buying, lifting palladium by nearly 6 percent
to a four-month high.
But analysts said with sales sharply down in the auto
sector, the main consumer of platinum, the rally lacked
fundamentals to support it and was seen short-lived.
Spot gold <XAU=> was at $938.05 an ounce at 3:00 p.m. EDT
(1900 GMT), up 0.5 percent from its last quote $933.15 in New
York late Wednesday.
U.S. gold futures for April delivery <GCJ9> settled up
$4.20 at $940.00 an ounce on the COMEX division of the New York
Mercantile Exchange.
"Money keeps pushing into commodities on concerns over the
money supply in the United States," said John Meyer, head of
resources at Fairfax. "Gold is a popular place to be right
now."
Gold is used as a hedge against financial uncertainty and
against inflation, which is expected to soar because of the
vast amounts of money being piped into the global economy by
central banks and governments.
The U.S. plan to buy long-dated Treasuries further raised
those inflationary concerns and have also dented the outlook
for the dollar, which in turn is supportive for bullion.
But on Thursday, the dollar rebounded against the euro
<EUR=> in volatile trade.
James Steel, chief commodities analyst at HSBC, said that
gold was sensitive to dollar movements, and that gold would
benefit if the greenback's world reserve currency status was
seriously challenged.
In exchange news, CME Group Inc said on Thursday it will
launch mini gold kilogram and mini silver 1,000 ounce futures
contracts, in response to rising interest among investors.
[]
PLATINUM GROUP METALS RISE
The U.S. economy contracted slightly more than previously
estimated in the fourth quarter, pulled down by falling
consumer spending and exports, while corporate profits plunged
by the biggest margin since 1994. []
Platinum group metals, however, rallied on enthusiasm after
a senior U.S. senator said the Obama administration task force
was likely to recommend more aid for the automakers.
[]
Spot platinum <XPT=> touched $1,159.00 an ounce, its
highest since Sept. 26. It was last at $1,141.00 an ounce, up
1.9 percent from its previous close of $1,120 an ounce late in
New York on Wednesday.
Platinum's strength lifted sister metal palladium <XPD=>
nearly 6 percent higher to $226.50 an ounce, its highest since
Nov. 11. It was at $220.50 an ounce, up 5.8 percent from its
previous finish of $208.50 an ounce.
Spot silver <XAG=> was at $13.58 an ounce, up 0.8 percent
from its previous finish of $13.45 an ounce.
The poor state of the global economy has boosted investment
appetite for gold since the start of the year, with holdings in
the world's largest exchange-traded fund hitting consecutive
record highs.
For details on the gold holdings of the ETF listed in New
York and co-listed on other exchanges, click on:
http://www.exchangetradedgold.com/iframes/usa.php
For a graphic, click on:
https://customers.reuters.com/d/graphics/MKTS_SPDRGLD240309.jpg
(Additional reporting by Chikako Mogi in Tokyo; Editing by
Lisa Shumaker)
